India is preparing for a major expansion of its electronics manufacturing industry, with overall production expected to reach $433.43 billion by FY31, according to projections cited in a Kotak Mutual Fund report. The anticipated growth points to a significant shift in the country’s electronics ecosystem, with domestic component manufacturing expected to play a much larger role.
Electronic components are projected to be one of the fastest-growing segments. Production is estimated to rise from $10.5 billion in FY24 to $129.90 billion by FY31, representing an increase of more than 14 times over the seven-year period. The projected expansion also indicates that components could contribute more to the industry’s growth than several established electronics categories.
Mobile phone manufacturing is expected to remain an important part of the sector, with production forecast to increase from $51 billion in FY24 to $137.75 billion by FY31. However, the projections suggest that India’s electronics ambitions are moving beyond smartphones toward a broader manufacturing base that includes components and other higher-value products.
Consumer electronics is also expected to expand during the period. Production of products such as televisions, audio equipment and accessories is projected to rise from $13 billion to $31.17 billion. Meanwhile, IT hardware manufacturing, covering products such as laptops and tablets, could increase from $5 billion in FY24 to $27.72 billion by FY31.
Emerging product categories are expected to contribute substantially to the industry’s expansion as well. Wearables and hearables are projected to grow from $2.5 billion to $32.95 billion, while auto electronics could rise from $8 billion to $28.55 billion. Telecom equipment production is forecast to climb from $3.5 billion to $12.97 billion.
The report also projects growth in other electronics products, with that segment expected to increase from $21.5 billion in FY24 to $32 billion by FY31. Together, the projections point to increasing diversification across India’s electronics manufacturing landscape.
The anticipated increase in component production is particularly significant. The segment is expected to add about $120.80 billion in output during the period, compared with an estimated $93.55 billion increase in mobile phone production. This suggests that components could become a central pillar of India’s electronics strategy.
The expansion is expected to strengthen domestic capabilities across the electronics supply chain, reduce dependence on external sources for key inputs and create opportunities for manufacturers in multiple sectors.
With production projected to reach hundreds of billions of dollars by FY31, India is positioning itself to move from being primarily a major electronics assembly base toward becoming a more comprehensive manufacturing center with stronger capabilities across the global value chain.
