CIOInsider India Magazine
India's Electronics Components Demand Estimated to Reach $ 240 billion by 2030
According to reports, the demand for electronics components and sub-assemblies in India is expected to grow to $240 billion to support $500 billion worth of electronics production by 2030.
In 2023, this demand is estimated to have reached11, 020 billion to support electronics production worth4455 billion.
Moreover, priority components and sub-assemblies including PCBAs (printed circuit board assembly) are projected to grow at a compound annual growth rate of 30 percent, reaching $139 billion by 2030.
In the high potential PCBA segment alone, where today's demand is mainly met by imports, it is expected to grow by 30 percent, leading to the creation of demand of about demand87.46 billion by 2030.
According to the report, components or sub-assemblies of batteries (lithium-ion), camera modules, mechanical (enclosures, etc.), displays, and PCBs (printed circuit boards) account for a cumulative 2022 component demand of 43 percent. These have been identified as top priorities for India and are expected to grow by 2030 to $ 516 billion.
These components have either a nominal production in India or are heavily import-dependent. According to reports, India can hardly afford to sustain this trend of importing the priority components.
The main challenges to the domestic manufacturing of components and subassemblies are manufacturing-related cost barriers, and large-scale manufacturing costs compared to rival economies like China, Vietnam, and Mexico (10-20 percent).
The policy support would bring benefits such as job creation of around 2.8 lakhs by 2026 and an increase in GDP, helping to firmly position India as a global hub for electronics manufacturing
According to reports, critical actions are required to transition India’s electronics sector ecosystem from ‘import-dependent assembly-led manufacturing’ to ‘component level value-added manufacturing’.
The policy support would bring benefits such as job creation of around 2.8 lakhs by 2026 and an increase in GDP, helping to firmly position India as a global hub for electronics manufacturing, as per reports.
