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India is expected to witness strong and exponential growth in the electronics manufacturing sector amid the ongoing global supply chain realignment in the electronics sector, according to a new report by PwC.
The report pointed out that the electronics industry is experiencing a shift in the global supply chain, with India emerging as a key destination. This shift has already led to significant growth in the production of items like smartphones and other electronic products. It said "India aims to reach USD 500 Bn of domestic prediction - the nation may reach USD 282 Bn conservatively by 2030". The report outlined three possible growth scenarios for the sector, conservative, moderate, and ambitious. Even if India grows conservatively, India's domestic electronics production could reach USD 282 billion by 2030. A moderate growth path projects this figure at USD 418 billion, while the ambitious scenario, aligned with the target set by NITI Aayog, estimates the production could hit USD 500 billion, provided there is aggressive policy support by the government and continuous investments. The report mentioned that while mobile phones, semiconductors, and consumer electronics are expected to lead the way, it also cautioned that other segments may grow at a slower pace due to limited capital expenditure. This could slightly restrict the overall speed of development. Several factors are expected to fuel growth in the sector. India is currently the second-largest smartphone market in the world. The mobile and wearables segment alone is projected to grow to USD 159 billion by FY2030. In Information Technology, the report stated that the electronics market is expected to touch USD 32 billion by the same period. The rising demand for data servers, likely to increase tenfold, will also contribute to the surge in domestic production. The telecom sector is witnessing rapid change as well. In the last five years, data traffic has grown 60 times, and by 2026, more than 65 per cent of total data revenue is expected to come from 5G services. This trend will further boost the need for telecom-related electronics and infrastructure. The industrial electronics segment is also evolving with emerging sectors like EV chargers and smart industrial automation becoming important growth drivers. Overall, the PwC report indicated that India's electronics manufacturing industry is on track for strong expansion. Achieving the upper end of the projected growth will depend on continued policy support, infrastructure development, and targeted investments in high-growth areas. (ANI)
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