At BS Manthan Business Standard’s annual thought leadership summit Sunil Vachani Co-founder and Executive Chairman of Dixon Technologies highlighted India’s growing prominence as a global manufacturing hub. He emphasized the pivotal role of states like Uttar Pradesh, Gujarat, and Tamil Nadu in attracting large-scale investments particularly in high-value electronics manufacturing.
Uttar Pradesh: A Rising Star in Electronics Manufacturing
Vachani praised Uttar Pradesh for its remarkable progress in becoming a leading destination for electronics manufacturing.
- Mobile Manufacturing Hub: Nearly 60% of mobile phones sold in India are manufactured in Uttar Pradesh.
- Government Support: The state’s proactive policies and infrastructure development have made it an attractive destination for investors.
“Uttar Pradesh has done a tremendous job in recent years. It is emerging as a key player in India’s electronics manufacturing ecosystem,” said Vachani.
Dixon’s Expansion Plans
Dixon Technologies one of India’s leading electronics manufacturing services (EMS) providers is actively expanding its footprint across the country.
- Chennai Plant: Confirmed as the next manufacturing location focusing on high-value components.
- Future Projects: Evaluating sites in Uttar Pradesh, Gujarat, and Tamil Nadu for large-scale investments, including display fabs and semiconductor manufacturing.
India’s Competitive Advantage
Vachani highlighted several factors that position India as a global manufacturing powerhouse:
- Zero-Duty Import-Export Policy: Facilitates seamless trade and reduces costs.
- Highly Productive Workforce: A skilled and cost-effective labor force.
- Government Initiatives: Policies like Make in India and Production-Linked Incentive (PLI) schemes are driving growth.
Global Opportunities in Electronics Manufacturing
With global supply chains undergoing realignment due to geopolitical shifts and trade barriers India has a unique opportunity to capture a larger share of the electronics manufacturing market.
- US Market Potential: The United States imports 10billionworthofLEDTVs∗∗and∗∗10billionworthofLEDTVs∗∗and∗∗60 billion worth of mobile phones annually.
- Free Trade Agreement (FTA): Vachani stressed the need for an FTA to address reciprocal tariffs and boost electronics exports.
Job Creation and Economic Impact
The electronics manufacturing sector has already created over 1 million jobs in India with mobile manufacturing leading the way. This growth underscores the sector’s critical role in India’s economic development.
Deepening Domestic Value Addition
While India has made significant strides in electronics manufacturing Vachani emphasized the need to increase domestic value addition.
- Current Value Addition: Approximately 20%, compared to 25-30% in Vietnam and 50% in China.
- Dixon’s Goal: Increase value addition to 30-35% by investing in the production of key components like display panels, camera modules, and mechanical parts.
Upcoming Projects
Dixon Technologies is set to achieve several milestones in the coming years:
- Display Module Manufacturing: To begin by October 2025.
- Camera Module Plant: A new facility will be launched soon after.
India’s Manufacturing Potential
Vachani expressed optimism about India’s long-term potential as a global manufacturing hub.
“With the right policies and industry collaboration, we will not just be a manufacturing destination—we will lead in high-value electronics production,” he said.
Dixon vs. Foxconn
Addressing comparisons with Foxconn, the Taiwanese electronics giant, Vachani remarked, “We look forward to a future where Taiwanese companies aspire to be called the Dixon of Taiwan.” He acknowledged Foxconn’s achievements but emphasized that Dixon’s journey is far from over.
Conclusion
Dixon Technologies’ vision for India’s electronics manufacturing sector is both ambitious and inspiring. By leveraging state support, global opportunities, and a skilled workforce Dixon is driving India’s transformation into a global manufacturing leader.
As Uttar Pradesh, Gujarat, and Tamil Nadu emerge as key hubs for electronics manufacturing, India is well on its way to becoming a powerhouse in high-value electronics production.