India is positioning itself as a future powerhouse in electronics manufacturing, with a projected demand for electronic components and sub-assemblies reaching a staggering $240 billion by 2030, according to a report by the Confederation of Indian Industry (CII). This ambitious target is driven by the government’s push to promote domestic production and reduce reliance on imports.<\/p>\n\n\n\n
The CII report highlights that priority components, including printed circuit board assemblies (PCBAs), lithium-ion batteries, camera modules, and displays, are expected to witness significant growth, with the PCBA segment alone projected to reach $139 billion by 2030. However, challenges remain. India’s electronics industry currently relies heavily on imports for these critical components due to higher manufacturing costs compared to competing nations like China, Vietnam, and Mexico. Additionally, the lack of large domestic manufacturers, an underdeveloped design ecosystem, and shortages in raw materials pose significant hurdles.<\/p>\n\n\n\n
Despite these challenges, India’s growing domestic technology market and vast pool of skilled workers are attracting investments from global tech giants. Microsoft has committed approximately $3.7 billion to the state of Telangana, with plans to build data centres that would significantly expand its computing capacity in the country. Amazon, too, is investing heavily in India’s cloud infrastructure. These investments are not only driven by the burgeoning AI industry but also by the concept of “sovereign AI”, which has fuelled demand among governments for data centres within their borders.<\/p>\n\n\n\n
The Indian government is actively courting tech companies with incentives and policies to boost domestic electronics manufacturing. However, the rapid expansion of data centres raises environmental concerns, particularly regarding their high electricity and water consumption in a country already facing water stress.<\/p>\n\n\n\n
\nBook a meeting with us at Electronica India 2024, 11 – 13 Sep 2024<\/a><\/p>\nAstute Group<\/cite><\/blockquote>\n\n\n\n
While the government’s ambitious targets and investments from tech giants signal a promising future for India’s electronics industry, the country must address the underlying challenges to realise its full potential. Reducing manufacturing costs, developing a robust domestic supply chain, and fostering innovation in design and technology will be crucial for India to achieve its goal of becoming a global electronics manufacturing hub.<\/p>\n\n\n\n
The path to self-sufficiency in electronics manufacturing is fraught with challenges, but the potential rewards are immense. India’s success in this endeavour will not only transform its own economy but also reshape the global electronics landscape. As the country navigates this complex journey, the world watches with anticipation to see if India can truly live up to the electronics hype.<\/p>\n\n\n\n
Thousands of senior engineers and procurement professionals subscribe to our LinkedIn Market Intel newsletter – get yours here<\/a><\/p>\n\n\n\n
For more help with looking at supply chain options, <\/a>contact Astute Electronics<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
India is positioning itself as a future powerhouse in electronics manufacturing, with a projected demand for electronic components and sub-assemblies reaching a staggering $240 billion by 2030, according to a report by the Confederation of Indian Industry (CII). This ambitious target is driven by the government’s push to promote domestic production and reduce reliance on […]<\/p>\n","protected":false},"author":5,"featured_media":49967,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[546],"tags":[550],"acf":[],"_links":{"self":[{"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/posts\/50362"}],"collection":[{"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/comments?post=50362"}],"version-history":[{"count":1,"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/posts\/50362\/revisions"}],"predecessor-version":[{"id":50369,"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/posts\/50362\/revisions\/50369"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/media\/49967"}],"wp:attachment":[{"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/media?parent=50362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/categories?post=50362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.astutegroup.com\/wp-json\/wp\/v2\/tags?post=50362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}