India’s Electronics Push Needs Scale, Design, and Ecosystem Depth to Sustain Global Play
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While PLI approvals boost momentum, experts urge deeper value addition, design innovation, and supply chain maturity to position India as a competitive global manufacturing hub.
PLI Boost Fuels Optimism—but Scale Is Just the Start
India’s electronics manufacturing ambitions got a fresh boost with the government approving 17 new proposals worth over ₹7,100 crore under the electronic component PLI scheme. But industry leaders caution that policy-driven capacity must now evolve into sustainable capability.
- Total approvals under the scheme now stand at ₹12,700 crore across 24 projects.
- The initiative, launched with an outlay of ₹22,919 crore, aims to deepen India’s component manufacturing footprint.
However, as Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association (ICEA), puts it:
“We have crossed the first big milestone of building capacity, but this is not the finish line.”
From Assembly Hub to Design Powerhouse
A key concern among experts is India’s continued reliance on assembly-led growth, which limits value addition and technological self-reliance.
- Mohindroo stresses that local design capabilities are critical if India is to evolve from a contract manufacturing destination to a strategic electronics player.
- Value addition through design-led innovation and R&D is seen as a game changer in raising margins and global competitiveness.
In short, “design in India” must complement “Make in India.”
Ecosystem Development: Clusters, Talent, and Supply Chain Depth
Ashok Chandak, President of IESA, noted that India’s ability to scale production is now visible, but its ecosystem depth remains a work in progress.
“We have to build the clusters, the supply chain depth and the design talent,” he said.
To achieve this, India must focus on:
- Regional manufacturing clusters with shared infrastructure
- Localised sourcing networks to reduce import dependence
- Skilled talent pipelines, especially in chip design, embedded systems, and product engineering
Without these, cost advantages alone won’t ensure sustainability in the global value chain.
Regional Diversity and Employment Impact
The latest round of PLI approvals shows promising regional diversity:
- Proposals have come from Jammu & Kashmir, Uttar Pradesh, Madhya Pradesh, Karnataka, Maharashtra, and Tamil Nadu.
- Major approvals include Aequs Consumer Products (₹1,500 crore), Uno Minda, and a Syrma SGS subsidiary.
The government expects these projects to generate:
- ₹1.1 lakh crore in production
- Over 17,000 direct jobs
This regional spread is vital for inclusive growth and building pan-India manufacturing capabilities.
Policy Consistency and Infrastructure Key to Attracting FDI
Industry leaders unanimously agree: India’s next leap depends on sustained, consistent policy support.
Key asks from the ecosystem include:
- Predictable export incentives
- Simplified compliance frameworks
- Faster infrastructure rollout—especially logistics parks, testing facilities, and supply chain hubs
As global electronics brands diversify beyond China, India must act swiftly to become the preferred alternative by offering reliability, resilience, and scale.
