Walk into any Tier-2 or Tier-3 town in India today and you will find something remarkable: every home has a smartphone, every shop has a CCTV camera, and every new building is fitted with LED lighting. Someone manufactures all of it. That someone, increasingly, is an Indian entrepreneur. India's electrical and electronics manufacturing business is not just growing — it is transforming. The government's bold push to make India a global electronics hub, combined with rising domestic demand and a shift away from Chinese imports, has opened doors that simply did not exist five years ago.
For a startup founder or first-time MSME investor, the electronics manufacturing industry in India presents something rare: a sector where demand is guaranteed, government support is generous, and the window for entry is wide open. This guide explains why — with the data and schemes a serious entrepreneur needs to make an informed decision.
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At a Glance: Starting an Electrical & Electronics Manufacturing Business in India
• India electronics market size (2023–24): approx. USD 155 billion
• Projected market size by 2030: USD 300 billion (Ministry of Electronics and IT)
• Sector CAGR: ~17% (2024–2030, industry estimate)
• Key manufacturing states: Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, Karnataka
• Key licence required: BIS Certification (Bureau of Indian Standards) for electronic products
• PLI Scheme outlay for electronics: ₹40,951 crore (Ministry of Electronics and IT, 2024)
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The Case for Starting an Electronics or Power Projects Business in India Right Now
India's electronics sector is the fastest-growing manufacturing segment in the country's industrial landscape. The Ministry of Electronics and Information Technology (MeitY) has set a production target of USD 300 billion by 2030 — nearly double the current output. That gap between where India is today and where policy mandates it to go is the single most compelling business case for a new entrant.
The demand story is driven by several converging forces. First, India crossed 850 million internet users in 2023 (TRAI data), and each new user needs a device. Second, India's power sector is undergoing the largest infrastructure expansion in decades: the National Electricity Plan 2023 targets 820 GW of installed capacity by 2030, up from 416 GW today (Ministry of Power). Every gigawatt of new capacity needs switchgear, transformers, cables, and control panels — all manufactured goods. Third, the government's PLI (Production Linked Incentive) scheme for electronics offers incentives to manufacturers who cross production thresholds, directly rewarding early movers.
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India's electronics production reached ₹9.52 lakh crore (approx. USD 115 billion) in FY2023–24, up from ₹5.33 lakh crore in FY2021–22 — a 79% increase in two years. (MeitY Annual Report 2023–24)
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Import substitution is the other powerful driver. India currently imports approximately USD 70–75 billion worth of electronics annually, predominantly from China. Every product manufactured domestically — power supplies, PCBs, wiring harnesses, LED drivers — reduces that import bill. The government has signalled through tariff structures and PLI design that it will reward manufacturers who replace these imports. For an MSME entering power projects manufacturing in India, this policy tailwind is equivalent to a guaranteed demand floor.
The sector also offers significant export upside. India's electronics exports crossed USD 23 billion in FY2023–24 (MeitY data), with targets set at USD 120 billion by 2026. Electrical equipment — transformers, switchgear, cables — already finds strong demand in African, Middle Eastern, and Southeast Asian markets where Indian quality is price-competitive. An entrepreneur who builds export capability from day one captures the premium that domestic-only players miss.
Finally, the energy transition creates entirely new product categories: solar inverters, EV chargers, battery management systems, smart meters. These are not niche — India plans to install 500 GW of renewable energy by 2030 (Ministry of New and Renewable Energy) and connect 100% of vehicles sold by 2030 to electric drivetrains. Each of these transitions runs through a manufacturing unit. The entrepreneur who positions a plant in these sub-segments today faces almost no serious domestic competition — and a decade of guaranteed demand.
Market Demand, Growth and Statistical Evidence for Electronics Manufacturing
India's electronics market growth is underpinned by fundamentals that most sectors would envy. Consumer electronics, industrial electronics, and power equipment together form a USD 155 billion market in India, growing at an estimated 17% CAGR through 2030 (industry estimate, aligned with MeitY projections). The end-user breakdown is telling: consumer electronics (smartphones, appliances) account for ~45% of demand; industrial electronics (PLCs, sensors, drives) ~25%; power equipment (transformers, switchgear, cables) ~20%; and emerging segments (EV, solar, smart grids) ~10% and rising.
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Year
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India Electronics Production (₹ Lakh Crore)
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Electronics Exports (USD Billion)
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Segment Note
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2019–20
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5.33
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9.4
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Pre-PLI baseline
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2020–21
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5.80
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10.1
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COVID disruption year
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2021–22
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6.42
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13.9
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PLI momentum begins
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2022–23
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8.22
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18.5
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iPhone/mobile surge
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2023–24
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9.52
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23.0
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Record production year
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2025–26 (F)
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13.00
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45.0
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MeitY target, industry estimate
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2029–30 (F)
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24.80
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120.0
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MeitY USD 300 billion target scenario
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Source: MeitY Annual Reports 2024; CAGR assumption ~17% applied to forecasts beyond 2023–24.
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India's semiconductor design sector employs over 30,000 engineers and contributes to designs used globally — yet 99% of chips are imported. The government's ₹76,000 crore Semicon India programme aims to change this by 2028. (MeitY, 2023)
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What Government Data Reveals About the Electronics Sector for New Entrants
Official government statistics paint a compelling picture for any entrepreneur evaluating the electronics business opportunity in India. The Ministry of Electronics and IT (MeitY) tracks production, exports, employment, and investment data that go far beyond what market research reports capture. Here is what those numbers tell a startup founder.
MeitY's Annual Report 2023–24 records that registered electronics manufacturing units in India crossed 23,000 in FY2024 — a 34% increase over FY2020. This surge reflects the PLI scheme's success in attracting new capital. The DPIIT reports that FDI inflows into the electronics and electrical equipment sector totalled USD 4.0 billion between April 2020 and March 2024, indicating that global investors have already validated this bet. For an Indian MSME, this is an encouraging signal: where foreign capital enters, demand infrastructure follows.
Employment data from the Ministry of Labour & Employment shows electronics manufacturing directly employing over 2 million workers in India, with the National Skill Development Corporation (NSDC) estimating that the sector will require an additional 7.5 million skilled workers by 2030. For a new plant owner, this translates to a well-developed, increasingly skilled labour pool — particularly in states like Tamil Nadu, Karnataka, and UP where government ITI training aligns with sector needs.
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Metric
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Value
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Source & Year
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Electronics production FY2023–24
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₹9.52 lakh crore (~USD 115 billion)
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MeitY Annual Report 2024
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Electronics exports FY2023–24
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USD 23 billion
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MeitY / DGFT 2024
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PLI scheme outlay (electronics)
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₹40,951 crore
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MeitY PLI Notification 2024
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Registered electronics units
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23,000+ (FY2024)
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MeitY 2024
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FDI in electronics (Apr 2020–Mar 2024)
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USD 4.0 billion
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DPIIT 2024
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Sector employment
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2 million+ direct
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Ministry of Labour 2024
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Target production by 2030
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USD 300 billion
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MeitY Vision 2030
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Source: MeitY Annual Report 2023–24; DPIIT FDI Statistics 2024; Ministry of Labour Employment Data 2024.
The power sector data adds another dimension. The Central Electricity Authority (CEA) reports that India's power equipment domestic manufacturing capacity — transformers, switchgear, cables — currently meets only 65–70% of annual demand. The remaining 30–35% is imported. With the government's national electrification and renewable energy targets, this gap is projected to widen before domestic capacity catches up — representing an unambiguous production opportunity for new manufacturers.
Government Schemes and Support Facilities for Electronics Manufacturers
The government schemes for electronics manufacturing in India are among the most comprehensive in any industrial sector. PLI Scheme for Large-Scale Electronics Manufacturing (Scheme I) offers an incentive of 4–6% on incremental sales for five years. PLI for IT Hardware (Scheme II) targets laptops, tablets, and servers. Both are administered by MeitY and have specific MSME carve-outs.
The Modified Electronics Manufacturing Clusters (EMC 2.0) scheme provides financial assistance of up to 50% of project cost (maximum ₹70 crore) to develop plug-and-play infrastructure for electronics units. Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) reimburses 25% of capital expenditure for eligible component manufacturers — a direct benefit for PCB, passive component, and wire harness makers.
For MSMEs specifically, the MSME Ministry's Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides collateral-free loans up to ₹2 crore. The Technology Upgradation Fund Scheme (TUFS), though primarily textile-focused, has electronics sub-components. State-level schemes — Tamil Nadu's TIDCO, Karnataka's KEONICS, UP's electronics policy (2022) offering 25% capital subsidy — add another layer of support. The Startup India programme's tax exemption for three years also applies to electronics startups incorporated after 2016.
Import–Export Opportunity for New Indian Electronics Manufacturers
India's electronics export opportunity is real and growing. DGFT data shows that electronics exports grew from USD 9.4 billion in FY2020 to USD 23 billion in FY2024 — a near-tripling in four years. Mobile phones now account for ~55% of electronics exports, but the opportunity for MSME players lies in components, subassemblies, wiring harnesses, and industrial electronics, where competition is thinner and margins are firmer.
On the import side, India imported approximately USD 72 billion of electronics in FY2023–24 (DGFT data), with China accounting for ~60% of this. Components — semiconductors, displays, passives — dominate the import basket. Every component manufactured domestically reduces this bill and qualifies for RoDTEP (Remission of Duties and Taxes on Exported Products) benefits when exported. For a new manufacturer, the import substitution angle provides a price-cushion: domestic buyers will pay a modest premium to reduce supply-chain risk, especially post-2020 disruptions.
Key export destination markets for Indian electronics and electrical equipment include the USA, UAE, Netherlands, UK, and a fast-growing set of African nations. India's electrical equipment — transformers up to 220 kV, LT switchgear, cables — is price-competitive in these markets. The Export Promotion Council for EOUs and SEZs (EPCES) and the Electronic Industries Association of India (ELCINA) both provide market linkage support for new exporters.
Major Indian Manufacturers in the Electrical and Electronics Sector
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Company
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Segment
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Note
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Dixon Technologies
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Consumer electronics, mobile phones
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India's largest EMS company; PLI beneficiary
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Havells India
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Electrical products, cables, switchgear
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Pan-India distribution; strong MSME supply chain
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Bharat Heavy Electricals (BHEL)
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Power equipment, transformers
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PSU; major supplier to power sector projects
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Tata Power Solar
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Solar panels, inverters
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Largest integrated solar manufacturer in India
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Kaynes Technology
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Industrial electronics, IoT
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Listed MSME-to-midcap growth story
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Amber Enterprises
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AC components, PCBs, EMS
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Key supplier to Voltas, LG, Panasonic
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KEI Industries
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Cables and wires
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Strong in power sector and export markets
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Optiemus Electronics
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Mobile devices, IoT hardware
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MSME-origin; now listed on NSE
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The Growth Horizon: India's Electronics Sector Through 2035
Project the trajectory forward and the numbers compel attention. Starting from a USD 155 billion base in 2023–24 and applying the 17% CAGR assumption aligned with MeitY's own targets, India's electronics market is expected to reach approximately USD 300 billion by 2030 and could cross USD 400 billion by 2035 (industry estimate). Power equipment, driven by the 820 GW capacity target and EV penetration, is the fastest-growing sub-segment within this projection.
The EV transition alone will require hundreds of thousands of EV chargers, millions of BMS units, and vast quantities of copper wiring — all manufactured goods. The smart meter rollout under RDSS (Revamped Distribution Sector Scheme) will install 250 million smart meters by 2025–26. A business started today in smart metering components, EV supply equipment, or industrial automation boards is positioned precisely where demand will accelerate over the next decade. An entrepreneur who invests in this space in 2024 will be selling into peak demand by 2028–2030.
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Consultant's Insight
The single biggest mistake new electronics manufacturers make is trying to compete on finished products before building component competency. India's most successful MSME stories in this sector started with a single component — a PCB assembly line, a wiring harness, a power supply — and grew into complete product lines as they learned the quality systems. Start narrow, get your BIS certification right, and build from there. The demand will not run out.
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Practitioner Q&A: Starting an Electronics Manufacturing Business in India
Q1: What is the minimum investment to start a small electronics assembly unit in India?
A small-scale electronics assembly unit — wiring harnesses, LED drivers, or PCB assembly — can be started with ₹25–50 lakh in plant and machinery, plus working capital of ₹10–20 lakh. This qualifies as a Micro enterprise under the MSME definition and makes you eligible for CGTMSE collateral-free loans. States like UP and Rajasthan offer additional 25% capital subsidy on fixed assets for first-time manufacturers.
Q2: Which electronics sub-segment is best for a first-time entrepreneur with limited capital?
LED lighting components, cables and wiring harnesses, and power supply units (SMPS) are the most startup-accessible sub-segments. They require relatively simple technology, have large domestic demand, and face the highest import substitution incentive. BIS certification is mandatory for LEDs but achievable within 3–4 months.
Q3: How does the PLI scheme benefit a small electronics manufacturer?
PLI Scheme I for electronics is designed primarily for large players (minimum threshold ₹100 crore investment). However, PLI for IT Hardware and the SPECS scheme for component manufacturers have lower thresholds accessible to MSMEs. An MSME that qualifies for SPECS receives 25% of capex as a financial incentive — directly reducing your break-even period.
Q4: Is BIS certification mandatory for all electronics products?
Yes, for most consumer electronics and electrical products sold in India, BIS certification under the Compulsory Registration Order (CRO) or IS standards is mandatory. The list includes mobile phones, LEDs, power supplies, wires, and MCBs. New manufacturers should budget 3–6 months and ₹2–5 lakh for the certification process, depending on the product.
Q5: Which states offer the best incentives for electronics manufacturing startups?
Tamil Nadu (TIDCO's plug-and-play parks, 25% capital subsidy), Uttar Pradesh (Electronics Manufacturing Policy 2022 — 25% capital subsidy, electricity duty waiver), and Karnataka (KEONICS parks, MeitY EMC support) are the top three states. Andhra Pradesh and Telangana also offer competitive packages with low-cost industrial land in notified zones.
Q6: Can an Indian MSME realistically export electronics products?
Yes, and the opportunity is significant. Wiring harnesses, PCB assemblies, industrial control panels, and cables below 66 kV are all exported by Indian MSMEs. RoDTEP benefits of 1.5–4% on electronics exports reduce cost disadvantage. The government's focus on raising electronics exports to USD 120 billion by 2026 means logistics, EXIM facilitation, and market linkage infrastructure is improving rapidly.
Q7: What is the role of EMC (Electronics Manufacturing Clusters) for new units?
EMC parks under the MeitY scheme provide ready infrastructure — sheds, power, water, effluent treatment, testing labs — at subsidised rates. Setting up inside an EMC reduces your pre-production capital requirement by 30–40% compared to a greenfield setup. Clusters in Noida, Sriperumbudur (Tamil Nadu), and Hyderabad already host hundreds of units.
Q8: How long does it take to start production in an electronics unit?
With a pre-built shed in an EMC or industrial estate, a small assembly unit can begin production within 4–6 months of registration. Getting BIS certification, GST registration, MSME Udyam registration, and factory licence typically takes 3–4 months in parallel. The full timeline from decision to production is 6–9 months for an organised first-time entrepreneur.
Q9: What are the key quality standards a new electronics manufacturer must meet?
BIS certification (under the Electronics and IT Goods Quality Control Order) is mandatory for most consumer electronics. For power equipment, IEC and CEA standards apply. For export markets, CE marking (Europe) and FCC certification (USA) are required. Starting with domestic BIS compliance and then layering export certifications is the recommended sequence.
Q10: Is the solar and EV charging equipment segment viable for new manufacturers?
Solar inverters, charge controllers, and EV chargers are among the fastest-growing sub-segments in Indian electronics — driven by 500 GW renewable energy targets and EV adoption mandates. BIS certification under specific IS standards applies. Government procurement through DISCOM and SECI tenders gives new manufacturers an accessible first order if pricing and quality are competitive.
The Bottom Line
India's electronics and electrical manufacturing business offers a decade-long growth runway that few other sectors can match. The government has committed ₹40,951 crore in PLI support, set a USD 300 billion production target for 2030, and built cluster infrastructure across ten states. Domestic demand — driven by 850 million internet users, 500 GW of renewable energy targets, and a national EV transition — is structural, not cyclical. Import substitution, export growth, and energy transition together create a three-way demand engine that will sustain new entrants through market fluctuations.
The most important first step is to identify your sub-segment — whether it is wiring harnesses, LED components, power electronics, or solar equipment — get your BIS certification plan in place, and apply for your MSME Udyam registration to access government schemes. The window is open. The data confirms it. The policy supports it.
References
1. Ministry of Electronics and Information Technology (MeitY) — Annual Report 2023–24: Electronics production and export data.
2. Department for Promotion of Industry and Internal Trade (DPIIT) — FDI Statistics 2024: Foreign direct investment inflows into electronics sector.
3. Ministry of Power / Central Electricity Authority (CEA) — National Electricity Plan 2023: Installed capacity targets and power equipment demand.
4. Ministry of New and Renewable Energy (MNRE) — Annual Report 2023–24: Renewable energy targets and solar/EV sector projections.
5. Directorate General of Foreign Trade (DGFT) — Export-Import Data 2023–24: Electronics exports and imports, country-wise breakdown.
6. Ministry of MSME — CGTMSE Scheme Guidelines 2024: Credit support for micro and small electronics enterprises.
