{"id":28951,"date":"2026-01-16T17:37:30","date_gmt":"2026-01-16T12:07:30","guid":{"rendered":"https:\/\/www.niir.org\/blog\/?p=28951"},"modified":"2026-05-18T12:14:58","modified_gmt":"2026-05-18T06:44:58","slug":"electronics-manufacturing-business-india","status":"publish","type":"post","link":"https:\/\/www.niir.org\/blog\/electronics-manufacturing-business-india\/","title":{"rendered":"Electronics & Component Manufacturing in India: High-Potential Export-Oriented MSME Projects"},"content":{"rendered":"

Electronics manufacturing business in India<\/strong> is standing at a major turning point. After a decade-long transformation, India has shifted from being a large importer of electronic goods<\/a> to a strong global manufacturing and export hub for mobile phones, IT hardware, and telecom equipment. The Indian electronics sector was valued at around \u20b91.9 lakh crore in 2014\u201315, and by 2024\u201325 it has grown to nearly \u20b911.3 lakh crore, mainly driven by the assembly of mobile phones, computers, and telecom products.<\/p>\n

However, a gap exists: the major part of the value is in the components market, not in the assembly process. In fact<\/strong>, local value addition is still very low, at 18-20%, which is about half of the 40% that China and South Korea boast of, respectively. During the same period, however, India was a $35 billion electronics parts importer in FY24, mainly consisting of PCBs, connectors, sensors, passives, and semiconductors predominantly from China, Taiwan, Hong Kong, and Vietnam.<\/p>\n

At the same time, there is a significant increase in the export of electronic items that have jumped from $23.5 billion in FY22\u201323 to $38.6 billion in FY24\u201325, which is more than 30% growth within just a year. In other words, India imports components and exports finished products. The gap between exports and imports is the bright side for the newly formed MSMEs to establish their presence in the electronics industry.<\/p>\n

This article talks about the validation of the MSMEs giving birth to the high-potential, export-ready electronics, and component manufacturing projects that the government will support through its policies, global supply chain changes, and market data in the year 2026.<\/p>\n

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