India’s electronics manufacturing industry has achieved a remarkable milestone in 2024, reaching an impressive market size of $115 billion. This growth highlights the country’s increasing prominence as a global hub for electronics manufacturing and innovation. Over the past six years, the sector has nearly doubled in value, driven by a combination of strategic government initiatives, favorable policies, and evolving geopolitical dynamics.
Government Initiatives Fuel Growth
The success of India’s electronics sector is largely attributed to the government’s targeted reforms and programs. Flagship initiatives like the Production Linked Incentive (PLI) scheme have played a pivotal role in boosting manufacturing capabilities and attracting investments. These measures, combined with policies aimed at enhancing the ease of doing business, have created a robust ecosystem that supports growth and innovation.
Additionally, the changing global geopolitical landscape has further propelled India’s appeal as a manufacturing destination. Companies are increasingly viewing India not just as a lucrative market but as a reliable production hub for their global operations. Strategic alliances between Indian manufacturers and international giants underscore this growing confidence.
Optiemus: Leading the Way
Optiemus, a key player in India’s electronics manufacturing landscape, continues to lead with a strong focus on innovation and collaboration. The company has made significant strides in the telecom equipment and wearable technology segments, partnering with renowned brands like Tejas Networks and Xiaomi. Expanding its portfolio, Optiemus has ventured into the drone industry, introducing innovative products and solutions. The partnership with Corning International to establish a manufacturing facility in Chennai marks another milestone in its journey.
Looking ahead, Optiemus plans to deepen its involvement in the electronics supply chain, targeting value addition and enhancing Original Design Manufacturing (ODM) capabilities. The company’s roadmap for 2025 includes forging new partnerships, particularly in telecom and IT hardware sectors, such as servers. With these efforts, Optiemus aims to double its revenues within the next two years.
Addressing Challenges for Sustainable Growth
For sustained success, the electronics manufacturing sector must overcome certain challenges. The new PLI scheme for electronics components manufacturing needs to adopt a comprehensive approach that includes:
- Capital Expenditure Support: Adequate funding for infrastructure and technological advancements.
- Operational Incentives: Streamlining processes to reduce operational costs.
- Market Access: Facilitating global approvals and addressing non-tariff barriers to enable Indian companies to compete on an international scale.
- Skilled Workforce: Developing a highly skilled workforce to support advanced manufacturing processes, moving beyond basic assembly operations.
A Thriving Ecosystem for Innovation
The government’s focus on building a holistic ecosystem for electronics manufacturing is evident in its continued investment in infrastructure and policy support. Announcements under the PLI scheme for electronics components are expected to cover a wide range of parts, further strengthening the industry’s foundation.
The emphasis on creating high-value jobs is another critical aspect of this transformation. By investing in workforce development, India can ensure the availability of skilled talent required for high-tech manufacturing and innovation. This approach aligns with the broader goals of initiatives like “Make in India” and “Skill India,” driving both economic growth and global competitiveness.
Future Outlook
India’s electronics manufacturing industry is poised for continued growth, with the market expected to expand rapidly in the coming years. By fostering innovation, encouraging global partnerships, and addressing existing challenges, the sector can solidify its position as a global leader in electronics production. As companies like Optiemus lead the charge, the industry’s trajectory promises to contribute significantly to India’s economic development and technological advancements.
With sustained efforts, India is set to shape the future of electronics manufacturing, creating opportunities for businesses, generating high-value jobs, and driving inclusive and sustainable growth on a global scale.