Introduction
The global electronics industry is witnessing a signicant transformation as companies seek
reliable sourcing options beyond China. Amidst rising trade tensions and supply chain
uncertainties, India is stepping into the spotlight as a prime destination for electronics
manufacturing and exports. With its competitive labor costs, streamlined business processes and
strategic incentives, India is naturally attracting international players seeking to diversify their
supply chains.
Key Drivers of India’s Electronics Sector
1. Government Initiatives: The “Make in India” initiative and the Production Linked Incentive (PLI) scheme are driving this shift by incentivizing investments across various sectors, including electronics. The PLI scheme has attracted global giants like Apple and Samsung to set up extensive production facilities in India.
2. Skilled Workforce and Infrastructure: India boasts a large, skilled workforce that is crucial for labor-intensive electronics assembly tasks. The country’s easing ease of doing business rankings and upgraded infrastructure are also key advantages, oering businesses a favorable operational environment.
3. Export Growth: India’s electronics exports have grown signicantly, reaching $29.12 billion in FY 2023-24, reflecting increasing global demand for Indian-produced electronic goods.
Strategic Advantages Over China
1. Cost-Eectiveness: India oers lower labor costs compared to China, making it a more costeective option for manufacturing.
2. Policy Support: Indian government policies provide subsidies and incentives for manufacturing, enhancing economic viability.
3. Market Access: Its strategic geographic position oers easy access to both domestic and
international markets.
Conclusion
India is rapidly becoming a key player in the global electronics supply chain. With sustained government support, a skilled workforce and favorable economic conditions, India is poised to leverage this momentum to become a signicant electronics exporter, oering a robust alternative to traditional manufacturing centers in China.
