The most significant transformation is occurring on the demand side, according to industry executives. Consumers in Tier-2 and Tier-3 cities are increasingly seeking premium features at affordable prices, reshaping the country’s consumer electronics landscape.
Varin Agarwal, Chief Snapper at SnapUp, said India’s consumer electronics market is expected to expand from more than $70 billion currently to over $120 billion by 2030. He noted that brands face the challenge of delivering advanced technology while managing global sourcing dependencies and evolving supply-chain dynamics. According to him, companies that successfully combine innovation, affordability, and resilience will emerge as market leaders.
India’s electronics manufacturing sector has witnessed extraordinary growth over the past decade. Electronics production has increased from Rs 1.9 lakh crore in the 2014-15 financial year to more than Rs 11.3 lakh crore in the 2024-25 financial year. Exports have crossed Rs 3.27 lakh crore, while mobile phone production has surged to Rs 5.45 lakh crore. Smartphone exports have risen dramatically from just Rs 1,500 crore a decade ago to more than Rs 2 lakh crore today.
More than 99 percent of smartphones sold in India are now manufactured domestically, positioning the country as the world’s second-largest mobile phone manufacturer.
Despite these achievements, industry experts acknowledge that ongoing disruptions are exposing areas where India must strengthen its capabilities. Although electronics manufacturing has scaled rapidly, domestic value addition remains at approximately 18 to 20 percent, reflecting continued dependence on imported semiconductors, display panels, memory chips, battery cells, and specialised materials.
Recent supply-chain disruptions have affected the availability of several critical inputs, including high-purity polyphenylene ether resin used in printed circuit boards. Simultaneously, prices of various printed circuit board raw materials have increased sharply, creating additional pressure on manufacturers.
However, companies say years of supply-chain diversification have helped mitigate the impact of these disruptions.
Anurag Roy, Managing Director of ELANTAS Beck India Limited, said the recent challenges have underscored the complexity of modern electronics manufacturing. While localisation efforts are accelerating, many critical materials and specialised chemicals remain part of highly interconnected global supply chains, making resilience and continuity of supply increasingly important.
Roy stated that resilience cannot be built around a single sourcing strategy. He explained that the company has developed a model combining local supplier ecosystems, regional manufacturing capabilities, and access to global procurement networks. This strategy, he said, has enabled the company to remain responsive to changing customer requirements while maintaining supply continuity amid evolving market conditions.
The broader industry views the current situation as a catalyst for the next phase of India’s electronics expansion.
Tushar Tekriwal, Director of Startron Lifestyles, said India has already demonstrated its ability to scale electronics manufacturing. He stressed that the next challenge is creating deeper value within the country. Semiconductors remain among the largest component import categories, and recent supply-chain disruptions have reinforced the importance of component localisation, automation, and semiconductor development for future growth.
A major shift is already underway. India has approved semiconductor projects worth around Rs 1.6 lakh crore, including Tata Electronics’ fabrication facility and Micron’s assembly and testing plant. Policymakers and industry executives believe these investments will gradually reduce import dependence and strengthen domestic supply chains.
Tekriwal said the transformation witnessed over the past decade has fundamentally altered India’s position in the global electronics sector. He noted that electronics exports have increased from roughly Rs 38,000 crore to more than Rs 3 lakh crore, demonstrating the country’s transition from a predominantly consumption-driven market to a significant manufacturing destination.
The demand outlook remains equally strong. A recent assessment by Nuvama Institutional Equities found that premium products continue to outperform mass-market segments despite rising input costs. Industry leaders say consumers are increasingly prioritising quality, performance, advanced features, and reliable service.
Sahil Aggarwal, Co-founder of Robotek India, said consumer expectations are rising much faster than product prices. He explained that products in the Rs 1,000 to Rs 1,500 price category were previously purchased largely on cost considerations. Today, consumers expect superior audio quality, Type-C charging, longer battery life, premium design, warranty support, and dependable after-sales service within the same price range.
Roy emphasised that the next stage of growth will depend on building stronger domestic ecosystems around manufacturing. He said India has made significant progress in enhancing its electronics manufacturing capabilities, but long-term competitiveness will require reliable value chains across materials, components, and technologies.
Despite geopolitical tensions reshaping global trade routes and disrupting supply networks, India’s electronics sector continues to advance. Strong export growth, rising demand from smaller cities, and sustained investments in semiconductors and component manufacturing are reinforcing the industry’s resilience and positioning the country for the next phase of technological and manufacturing expansion.
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