India Poised to become Consumer Electronics Manufacturing Hub by 2025, Driven by Policy and Demand
New Delhi – India is rapidly transitioning from a consumer electronics assembly point to a full-fledged manufacturing hub, a shift expected to be considerably solidified by the end of 2025. A confluence of government initiatives like the Semiconductor Mission and the “Make in India” programme,coupled with robust domestic market demand,is fueling the production of increasingly elegant gadgets – from gaming laptops and Internet of Things (IoT) devices to,crucially,indigenous semiconductor chips.
This evolution marks a pivotal moment for the Indian economy, aiming to reduce reliance on East Asian supply chains and establish the nation as a key player in the global electronics landscape. While challenges remain,including infrastructure limitations,occasional power disruptions,and higher production costs compared to ASEAN manufacturers,the momentum towards homegrown innovation is demonstrably building.
Currently, key bottlenecks hindering further progress include a shortage of skilled labor and insufficient investment in Research & Progress (R&D) to bolster design and engineering capabilities.Despite these hurdles, imported devices are facing increasing competition from locally produced alternatives, though scale advantages enjoyed by East Asian manufacturers remain a critically important factor.
A commercially viable, made-in-India semiconductor is anticipated to be available by late 2025. Further expansion is expected in the packaging and OSAT (Outsourced Semiconductor Assembly and Test) sectors, strengthening the domestic supply chain. More Original equipment Manufacturers (oems) are projected to relocate production to India – notably for products like gaming laptops and IoT devices – as a strategy to mitigate supply chain risks. Concurrently, Indian companies are poised to expand their reach beyond the domestic market, initially targeting regions within South Asia and Africa.
By the end of 2025, India’s consumer electronics sector is expected to demonstrate a clear trajectory towards greater self-reliance and innovation, laying the foundation for sustained growth and global competitiveness.
