India’s electronics manufacturing sector is on the brink of a remarkable transformation, with projections indicating it could reach an astonishing $500 billion by 2030. According to a recent report from Motilal Oswal Wealth Management, the sector is expected to grow at a Compounded Annual Growth Rate (CAGR) of 26% from 2023 to 2030, positioning India as a global hub for electronics manufacturing.
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A Global Hub for Electronics Manufacturing
The surge in India’s electronics manufacturing is driven by a combination of factors, including increased assembly activities and rising demand across various sectors such as mobile phones, automotive, and industrial electronics. The government’s supportive initiatives, particularly the Production-Linked Incentive (PLI) schemes and the Semicon India program, are pivotal in fostering this growth. These programs aim to boost domestic production and reduce reliance on imports, aligning with the country’s vision of self-reliance.
Key Players Driving Growth
Several companies are leading the charge in this booming sector:
- Dixon Technologies is a standout player, benefiting from strong volumes in mobile assembly and other segments. With its leadership across various categories and a strategic product mix, Dixon is well-positioned for sustained growth.
- CG Power is crucial to India’s infrastructure development, specializing in power generation and distribution products. Their offerings, including voltage motors, breakers, and switchgears, are essential for industrial and energy applications.
- Kaynes Technology, an IoT-enabled integrated electronics manufacturer, is witnessing robust growth in its order book and improving margins. The company aims to triple its topline by FY29, targeting $1 billion in revenue by FY28, showcasing its ambitious expansion plans.
- Amber Enterprises is diversifying its operations beyond air conditioning, strategically targeting industries such as automotive, defense, medical, and telecom to expand its footprint in the electronics manufacturing ecosystem.
- Syrma SGS is leveraging its extensive order book of Rs 4,800 crore to drive growth across diverse sectors, including automotive, healthcare, and IT. With strategic investments in facilities in Pune and Hosur, the company is well-positioned to meet its FY25 revenue target of Rs 4,500 crore.
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A Transformative Journey Ahead
India’s electronics manufacturing sector stands at a pivotal moment, ready to capitalize on global opportunities and propel the nation into a new era of technological and economic growth. With a strong focus on innovation, self-reliance, and increasing domestic consumption, the future looks bright for this dynamic industry.
As the sector continues to evolve, it will play a crucial role in shaping India’s economic landscape, creating jobs, and enhancing the country’s position in the global electronics market. The journey ahead promises to be transformative, and stakeholders across the industry are gearing up to seize the opportunities that lie ahead.