The United States has recently imposed a 10 per cent tariff on electronic products imported from China, a move that industry analysts see as a positive development for India’s electronics manufacturing sector. This decision is anticipated to create new opportunities for Indian manufacturers, especially in sectors such as smartphones, laptops, and tablets. Companies like Dixon Technologies, Syrma SGS, and Optiemus, as well as Apple’s contract manufacturers like Foxconn, are likely to benefit from increased business as a result.

Increased Demand for Made-in-India Electronics

The additional tariffs on Chinese imports could encourage global companies to source electronic products from India, as Indian exports remain exempt from these duties. As a result, contract manufacturers in India may experience a surge in demand, further boosting the country’s production and export capabilities.

Government Incentives and the China Plus One Strategy

India has already been capitalising on the China Plus One strategy, where businesses diversify their supply chains beyond China. With the help of production-linked incentive (PLI) schemes for IT hardware and smartphones, several companies have begun setting up manufacturing units in India. These initiatives align with India’s goal of becoming a global electronics hub.

Current Electronics Production and Future Goals

According to estimates from the India Cellular and Electronics Association (ICEA), India’s total electronics production for FY24 stood at $115 billion, with mobile phones contributing approximately $52 billion. The country’s electronics output is projected to reach $140 billion in FY25. Looking ahead, the Indian government has set an ambitious target of achieving $500 billion in electronics production by 2030. To meet this goal, domestic manufacturing of electronic components and their exports will play a crucial role in serving international markets.

Annual Growth Targets for a $500 Billion Electronics Industry

To reach the $500 billion production target, India’s electronics sector will need to grow at an annual rate of 20-22 per cent. This requires continued policy support, infrastructure development, and investment in local manufacturing. If successful, India could emerge as a dominant player in the global electronics market.