How India Can Become a Leader in the $4.6 Trillion Global Electronics Market: NITI Aayog Lays Out the Strategy

New Delhi, February 14:
India has emerged as the world’s fastest-growing electronics export hub, with electronics now becoming the country’s second-largest export sector. However, to establish itself as a true global leader in the massive $4.6 trillion global electronics market, India must move beyond assembly-based manufacturing and focus on producing high-value components, improving value addition, and strengthening supply chain integration.

This was highlighted by NITI Aayog in its latest report released on Friday as part of the Trade Watch Quarterly publication.

India’s Growing Share in Global Electronics Demand

According to the report, India’s share in global electronics demand has expanded at a rapid pace. Between 2015 and 2024, India’s electronics demand grew at an impressive 17.2% CAGR, far exceeding the global growth rate of 4.4% during the same period.

The report noted that India’s electronics export sector has witnessed strong momentum, reflecting the country’s rising manufacturing capacity and increasing role in global supply chains.

India’s Electronics Exports Still Small Compared to Global Market

Despite rapid progress, India’s current electronics exports stand at approximately $42.1 billion, which remains a small fraction of the global electronics market valued at $4.6 trillion.

NITI Aayog pointed out that while India has performed well in segments such as:

• mobile phones
• consumer electronics
• communication equipment

the country’s overall contribution is still limited due to a heavy dependence on assembly-driven manufacturing.

Need to Shift from Assembly to Component Manufacturing

The report emphasized that India is currently positioned mainly as a supplier of finished electronic goods, largely assembled domestically. However, the real value in the electronics industry lies in advanced component manufacturing, especially in high-tech areas such as:

• integrated circuits
• semiconductors
• and other strategic electronic components

The report warned that India’s weaknesses in value addition, technological learning, and supply chain integration are limiting its competitiveness.

East Asia Dominates the High-Tech Electronics Trade

NITI Aayog also underlined that global electronics trade remains heavily concentrated in East Asia, with countries like China, Taiwan, South Korea, and Vietnam leading in the production of high-tech components and semiconductor-related products.

These nations have built deep industrial ecosystems that allow them to dominate global electronics exports, particularly in sophisticated component manufacturing.

Key Recommendations to Make India a Global Electronics Hub

To compete effectively and emerge as a global leader, NITI Aayog proposed a clear roadmap. The report suggested that India must:

• Boost component manufacturing instead of depending mainly on assembly operations
• Increase domestic value addition through deeper production capabilities
• Improve technological learning and innovation in the electronics ecosystem
• Address cost disadvantages faced by Indian manufacturers
• Leverage Free Trade Agreements (FTAs) to expand export opportunities
• Promote strategic component production, especially high-value electronics parts
• Strengthen supply chain integration to reduce import dependency

India’s Electronics Growth Opportunity

The report concluded that India has already shown strong potential in electronics exports, but achieving leadership in the global market will require a structural shift towards manufacturing critical components and developing a stronger domestic ecosystem.

With the right policy support, improved infrastructure, and investment in high-value manufacturing, India could significantly increase its share in global electronics trade and establish itself as a major electronics powerhouse in the coming decade.