Electronic Manufacturing Industry In India

Get To Know About Electronic Manufacturing Industry In India

Online Legal India LogoBy Online Legal India Published On 14 Nov 2022 Category Company Registration

One of the most active and diverse industries, the electronic Manufacturing Industry In India is always innovating and growing at rapid rates. Electronic System Design and Manufacturing (ESDM), one of the global industries with the quickest rate of growth, keeps enhancing people's lives, economies, and companies.

According to Invest India's reports, India's share of the global electronic Manufacturing Industry In India increased from 1.3% in 2012 to over 3.6% in 2019.

As per recent reports: by Government bodies:

  • India is anticipated to reach a $1 trillion digital economy by 2025.
  • By 2025, it is anticipated that India's Electronics Manufacturing Services (EMS) market will increase from USD 5 billion to USD 152 billion.

It is important for foreign investors to look into this industry because the international market views India as a fruitful area for sourcing electronics and products. And it is at this point that the electronic Manufacturing Industry In India is vital in introducing a wide range of options to possible foreign investors in the manufacturing of electronic components.

India: The Best Alternative for Foreign Investors to Produce Electronic Components

In 2019, the consumer and appliance electronics market in India was valued at USD 10.93 billion. According to recent projections, you can anticipate it will reach USD 200 billion by 2025.

By 2025, it is expected that the consumer electronics and appliances business would generate USD 21.18 billion. And this number is important to grasp the range of opportunities available to both domestic and international electronics firms. It would be accurate to state that the Indian market for electronic components is preparing to displace some of the largest electronics-producing nations in the world.

India is now a source of electronic components for an increasing number of nations. This is a fantastic chance for foreign investors wishing to enter the industry and establish a factory in India.

The National Policy on Electronics, 2019, of the Government of India seeks to reach a $400 billion turnover by 2025. Additionally, it aims to produce 1 billion cell phones worth USD 190 billion by 2025. This number includes the export of 600 million mobile phones at a total of USD 110 billion. Overall, the market for high-end electronics and products is strong in India, where electronic components are made.

Opportunities for Electronic Components Manufacturing in India

Additionally, according to the Care Ratings, producers of consumer electronics and appliances plan to boost output by almost 8% by FY22. For foreign investors looking to enter this market, reputable Indian electronic Manufacturing Industry In India, experts are the perfect partners.

The Department for Promotion of Industry and Internal Trade also reports that India exported electronics products worth USD 11.1 billion between April 2020 and March 2021 for FY21.

Government Initiatives

Through a number of policies, the GOI further seeks to strengthen its electronics manufacturing sector. The USD 23 billion production-linked incentive (PLI) initiatives are luring foreign businesses to set up manufacturing facilities in India.

Other strategies to expand the Indian electronics market include the modified electronics manufacturing clusters (EMC 2.0) plan, the scheme for promoting the production of electronic components and semiconductors (SPECS), and the remission of duties or taxes on export products (RoDTEP).

Opportunity for Foreign Investors

With the best factory setup consultants in India's strategic support, foreign investors can now enter this burgeoning sector.

Tecnova, one of the top electronic industry consultants in India, helps foreign companies build up production facilities and create blueprints that are specifically focused on India. Thus, it aids their entry into this lucrative industry for the production of electrical components.

Company Registration

These Indian businesses that provide industrial engineering consulting provide:

  • Customised market research to pinpoint the exact addressable market and develop a go-to-market plan.
  • Distribution roll-out, dealer and distributor search, or establishment of own network.
  • Support for retail roll-outs, including location selection, full store setup, and financial and operational management
  • Construction of manufacturing facilities (Greenfield Projects)
  • Partnerships between sources and contract manufacturers
  • Help businesses acquire a distribution network, etc.

Technology advancements are accelerating the widespread use of electronic goods with the implementation of IoT and Digital India. Government programs like "Smart Cities" and "Digital India" have also increased demand for IoT on the market. With these measures, a new era for electronics and related items is beginning.

Challenges in Electronics Manufacturing

The three primary sectors of the electronics business are semiconductors, original equipment manufacturers, and electronic Manufacturing Industry In India. Out of these industrial sub-verticals, we'll concentrate on the difficulties faced by EMS and small- to medium-sized contract manufacturers to make things simpler:

1. Shrinking Operating Margins

Prices are falling as a result of new developments and global competition. To continue to be profitable, businesses must continually improve their cost-effectiveness.

2. Complex Global Supply-Chain

Companies are being forced to balance internal and external resources more and more often while adhering to global norms. Operational burdens are rising as a result of problems like compliance and traceability. Components and subcomponents frequently travel across three or more continents before they arrive at the final customer.

3. Service and Warranty Management

Utilising the global supply chain has increased the importance of supplier quality control. The warranty reserve and post-production service hours are strongly impacted by having a solid quality and traceability system.

4. Short Product Life Cycles


EMS companies and contract manufacturers must have efficient New Product Introduction (NPI) processes in place due to the rapidly shifting tastes and preferences of consumers. To guarantee that product launches meet schedule, volume, and quality goals, closed-loop communication between sales, manufacturing, and engineering is essential.


5. Uncertain Demand

Production varies as a result of cyclical demand and overall economic turbulence. Consumer choice can impact demand for a specific product or business on a more detailed level. For the purpose of keeping inventory in line with demand, effective lean capabilities must be in place.

6. Sustainability


New laws and guidelines are driving businesses to take Corporate Social Responsibility (CSR) into greater consideration when making choices. Today's hot topic, e-Waste, is influencing discussions regarding product disposal and its effects on the environment. Now, when making decisions, businesses must take into account the entire product lifecycle.



Even though these difficulties might seem overwhelming, businesses have been coping with them in some capacity for a very long time. We think that fending off these difficulties and igniting shop floor drivers to push businesses closer to an operational excellence model may be accomplished by connecting elements of the value chain with technology. 

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Anjali Malhotra


Anjali Malhotra


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