CII has come out with a Report on “Developing India as the Manufacturing Hub for Electronics Components and Sub-Assemblies”. The Report encapsulates critical actions required to transition India’s Electronics sector ecosystem from an ‘import dependent assembly led manufacturing’ to ‘component level value-added manufacturing’.
As per the Report, in 2023, the demand for components and sub-assemblies stood at USD 45.5 billion to support USD 102 billion worth of electronics production. This demand is expected to scale to USD 240 Billion to support the USD 500 Billion worth electronics production by 2030. Priority components and sub-assemblies including PCBAs, are projected to grow at a robust CAGR of 30%, reaching USD 139 billion by 2030.
The Report identifies 5 priority components/sub-assemblies of batteries (lithium-ion), camera modules, mechanicals (enclosures etc.), displays and PCBs which are categorized as high priority for India. They cumulatively accounted for 43% of the components demand in 2022 and is expected to grow to USD 51.6 billon by 2030. These components have either a nominal production in India or are heavily import dependent. India can hardly afford to sustain this trend of importing the priority components. Similarly, PCBA is a high potential category for India since most of the demand is met by imports. This segment is expected to grow by 30%, leading to a demand creation of ~USD87.46 billion by 2030.