Electronics Manufacturing Boom: 7 Powerful Reasons India Is Dominating Global Supply Chains

India’s electronics sector has surged under PM Modi’s policies, with production rising fivefold (₹11 lakh crore) and exports skyrocketing sixfold (₹3.25 lakh crore) in a decade. The newly approved Electronics Component Manufacturing Scheme aims to boost domestic production of passive components, complementing semiconductor-focused initiatives to reduce import reliance and solidify India’s role in global supply chains.

VVDN Technologies’ cutting-edge facilities in Manesar—featuring advanced SMT lines and a Mechanical Innovation Park—highlight India’s shift from assembly to design-led manufacturing, generating 3,000+ skilled jobs. A 5,000-strong engineering workforce now drives innovation in AI, 5G, and EV tech, backed by stronger IP safeguards and a three-tier skilling strategy.

While challenges like infrastructure gaps and global competition persist, India’s focus on vertical integration, trusted supply chains, and rare earth mineral security positions it to capture 10–12% of global electronics manufacturing by 2030. This strategic blend of policy, innovation, and skilled talent underscores India’s ambition to lead, not just participate, in reshaping global electronics value chains. 

Electronics Manufacturing Boom: 7 Powerful Reasons India Is Dominating Global Supply Chains

Under Prime Minister Narendra Modi’s leadership, India has cemented its position as a rising powerhouse in global electronics manufacturing, marked by transformative policies and private-sector dynamism. Union Minister Ashwini Vaishnaw’s recent announcement of the New Electronics Component Manufacturing Scheme—paired with the inauguration of VVDN Technologies’ cutting-edge facilities in Manesar—signals India’s ambition to dominate high-tech production and innovation.

Decade of Growth: From “Make in India” to “Design in India” 

Over the past decade, electronics production in India has skyrocketed fivefold to ₹11 lakh crore ($132 billion), while exports surged sixfold to ₹3.25 lakh crore ($39 billion). This growth, driven by the Make in India initiative, now supports over 2.5 million jobs. But beyond assembly lines, India is emerging as a design-led manufacturing hub. VVDN’s Global Innovation Park, home to 5,000 engineers developing AI-embedded systems and next-gen hardware like 5G infrastructure and EV components, exemplifies this shift.  

“India’s talent isn’t just manufacturing—we’re designing sophisticated products globally,” emphasized Shri Vaishnaw, highlighting the nation’s dual advantage: scale and innovation.  

The Component Manufacturing Scheme: Filling Critical Gaps 

The newly approved Electronics Component Manufacturing Scheme targets passive components (resistors, capacitors, connectors), complementing the ₹76,000 crore Semiconductor Mission focused on chips and active components. Together, these initiatives aim to:  

• Reduce import dependency (India currently imports 85% of components).  

• Strengthen supply chain resilience amid global geopolitical shifts.  

• Attract investments by offering PLI-style incentives for domestic component production. 

With guidelines set for release soon, the scheme could unlock $15–20 billion in local manufacturing opportunities, particularly in automotive, consumer electronics, and telecom.  

VVDN’s Mega Facilities: A Blueprint for Self-Reliance 

The inauguration of VVDN’s Surface Mount Technology (SMT) Line and Mechanical Innovation Park underscores India’s technical prowess:  

• SMT Line: Capable of assembling 250,000 components/hour, it enables mass production of AI servers, networking hardware, and IoT devices.  

• Innovation Park: A 150,000 sq. ft. hub for tool-making, injection molding, and precision engineering, fostering end-to-end product development. 

These facilities, generating 3,000+ skilled jobs, align with India’s push for vertical integration—reducing reliance on imported machinery and molds.  

Skilling, IP Protection, and Trusted Supply Chains 

To sustain growth, India is deploying a three-tier skilling strategy:  

• Basic training through ITIs and PMKVY centers.  

• On-site product-specific upskilling.  

• Industry-aligned university programs for advanced roles like semiconductor fabrication. 

Moreover, robust IP safeguards and a focus on “trusted” supply chains (critical for sectors like defense and telecom) are drawing multinationals seeking alternatives to China. Recent milestones, like VVDN’s deployment of 6,000 indigenously developed AI servers, reflect India’s growing hardware credibility.  

Challenges and the Road Ahead 

While progress is remarkable, hurdles remain:  

• Infrastructure gaps: Stable power, logistics efficiency, and port capacity need upgrades.  

• Global competition: Vietnam and Thailand offer aggressive incentives.  

• Rare earth dependencies: India must secure mineral access for components like magnets and batteries. 

Yet, with design innovation, policy agility, and a young workforce, India is poised to capture 10–12% of global electronics manufacturing by 2030—up from 4% today.  

Conclusion: A Global Electronics Leader in the Making 

India’s electronics journey transcends manufacturing—it’s about mastering the entire value chain, from R&D to recycling. As Shri Vaishnaw noted, “Our integrated approach—blending design, manufacturing, and skilling—will redefine global electronics.” With the component scheme and private-sector momentum, India isn’t just participating in global value chains; it’s reshaping them.  

For investors and innovators, the message is clear: India’s electronics revolution is just beginning.