Is India Technologically Advanced? The Real Story Behind Its Electronics Manufacturing Boom
India isn’t just catching up in technology-it’s building its own version of it. When people ask if India is technologically advanced, they’re often thinking of smartphones made in Bangalore or chips designed in Hyderabad. But the real story isn’t about flashy gadgets. It’s about factories humming in Tamil Nadu, supply chains reconfigured in Gujarat, and engineers in Uttar Pradesh assembling circuit boards that end up in smartphones sold across Africa and Southeast Asia.
India’s electronics manufacturing isn’t new-but it’s finally scaling
Back in 2014, India imported over $60 billion worth of electronics every year. Smartphones, laptops, TVs, and parts came mostly from China, South Korea, and Vietnam. Very little was made locally. Today, that number has dropped to under $45 billion in imports, even as domestic consumption has grown. How? Because India now produces over $120 billion worth of electronics annually. That’s more than double what it made just five years ago.
The turning point wasn’t a single law or a speech. It was a mix of incentives, pressure from global brands, and local entrepreneurship. The Production Linked Incentive (PLI) scheme, launched in 2020, offered companies up to 6% cash back on incremental sales of electronics made in India. Apple, Samsung, Foxconn, and Xiaomi didn’t just move assembly lines-they built entire ecosystems. Foxconn’s campus in Sriperumbudur now employs over 50,000 people. Samsung’s Noida plant is the world’s largest mobile phone factory.
It’s not just about assembly-India is designing components too
Many still think India only assembles phones. That’s outdated. Companies like Tata Electronics are now making printed circuit boards (PCBs) and connectors domestically. In Bengaluru, startups like Tejas Networks is a company that designs and manufactures telecom equipment including 5G radio units and optical transport systems are building hardware used by Jio and Airtel. Even more telling: India now exports over 30% of its electronics output, with key markets including the U.S., Germany, and the UAE.
India’s semiconductor design industry is growing fast. According to the India Semiconductor Mission, over 120 companies now design chips locally. Companies like SSTL is a space technology firm that designs custom integrated circuits for satellites and defense systems and Sankalp Semiconductor is a startup creating AI chips for edge computing applications are building chips for drones, medical devices, and smart meters. India doesn’t yet make silicon wafers at scale-but it’s designing the brains that will run them.
The infrastructure gap is shrinking, but it’s still real
India’s power grid isn’t perfect. Some factories in Tamil Nadu still deal with voltage drops. Logistics can be slow. But the government has invested over $10 billion in industrial corridors, dedicated electronics manufacturing zones, and upgraded ports. The Sriperumbudur-Chennai corridor now has 24/7 power backup, high-speed fiber, and customs clearance in under two hours.
One of the biggest wins? The rise of local suppliers. Five years ago, a phone maker in India had to import 80% of its components. Today, that number is below 50%. Companies like Vishay India is a manufacturer of passive electronic components including resistors and capacitors and Bharat Electronics Limited is a state-owned defense electronics company that now supplies components to consumer brands produce capacitors, sensors, and connectors locally. This isn’t just cost-saving-it’s resilience.
Who’s winning-and who’s still behind?
India leads in consumer electronics: smartphones, smart TVs, wearables, and power banks. It’s now the second-largest smartphone maker in the world after China. But it still lags in high-end areas like advanced semiconductors, industrial robotics, and precision medical devices.
Here’s what India can do-and what it can’t yet:
| Category | India’s Status | Global Leader |
|---|---|---|
| Smartphone Assembly | World’s #2 | China |
| PCB Manufacturing | Scaling rapidly | China, Taiwan |
| Chip Design | Strong growth | USA, Taiwan |
| Wafer Fabrication | None at scale | South Korea, Taiwan |
| Industrial Automation | Limited adoption | Germany, Japan |
| 5G Equipment | Domestic design and production | China, Finland |
India doesn’t need to replicate Taiwan’s chip factories to be advanced. It needs to build what the world needs next: affordable, reliable, locally adapted tech. That’s where India’s real edge lies.
The workforce is ready-and hungry
India graduates over 1.5 million engineers every year. But until recently, most went into IT services or finance. Now, they’re walking into electronics factories. Training centers like those run by NSDC is the National Skill Development Corporation that partners with electronics firms to train technicians in SMT assembly and quality control have certified over 300,000 workers in electronics manufacturing skills since 2020.
Young engineers from small towns in Madhya Pradesh and Odisha are now running production lines for global brands. One 24-year-old from Bhopal, trained through a government program, now manages a team of 120 workers at a Xiaomi plant in Uttar Pradesh. That’s not a story you’d find in Silicon Valley. But it’s the kind of innovation that builds real technological strength.
What’s next? India’s next tech frontier
The next five years will decide whether India becomes a global electronics hub or just a big assembly plant. Three things will make the difference:
- Local chip fabrication - The government has approved the first two semiconductor fabs, with investments from Tata and Vedanta. If they succeed, India will no longer depend on imports for critical chips.
- Green manufacturing - Factories are switching to solar power and water recycling. Samsung’s Noida plant now runs 40% on renewables.
- Export-led growth - India is signing trade deals with the EU and ASEAN to export electronics without tariffs. By 2030, exports could hit $200 billion.
India’s tech advancement isn’t about having the most powerful supercomputers. It’s about building a system where millions of people can make, fix, and improve technology every day. That’s not just advanced-it’s revolutionary.
Is India capable of making its own semiconductors?
India doesn’t yet have large-scale semiconductor fabrication plants, but that’s changing. The first two fabs, backed by Tata and Vedanta with government support, are under construction and expected to start production by 2027. These will focus on legacy nodes (28nm and above), which are still used in cars, appliances, and industrial systems. While India won’t compete with TSMC’s 3nm chips yet, it’s building the foundation to make chips for everyday electronics locally.
Why did global brands choose India over Vietnam or Thailand?
It’s not just about cost. India offers a massive domestic market, a young workforce, and political stability. The PLI scheme made financial incentives too good to ignore. Plus, companies wanted to reduce reliance on China. Vietnam has capacity limits and rising labor costs. India’s scale-over 1.4 billion people and 600 million internet users-means brands can sell and make products in the same country.
Are Indian-made electronics as good as those made in China?
For smartphones, TVs, and wearables, yes. Quality control at factories like Foxconn and Samsung in India meets global standards. Independent tests by Consumer Reports and India’s Bureau of Indian Standards show no significant difference in durability or performance. The difference is in the supply chain: Indian-made products now use more local parts, which can mean slightly longer lead times but better long-term support.
Can India compete in AI hardware and robotics?
India is strong in AI software but still catching up in hardware. Companies like Sankalp Semiconductor is a startup creating AI chips for edge computing applications are designing processors for autonomous drones and smart agriculture. Robotics startups like GreyOrange is a robotics company that builds automated warehouse systems used by Flipkart and Amazon India are deploying robots in logistics. The gap is in high-precision motors and sensors-but local manufacturing of these is starting to grow.
What’s the biggest obstacle to India becoming a tech superpower?
Access to capital for deep tech startups. While consumer electronics manufacturing is booming, funding for hardware innovation-especially in areas like quantum computing or advanced sensors-remains limited. Venture capital still prefers software. Without more investment in R&D and pilot manufacturing, India risks being stuck as a producer of mature tech, not a creator of next-gen tech.
Final thought: Technology isn’t about where it’s made-it’s about who controls it
India’s journey in electronics manufacturing isn’t about replacing China. It’s about creating a parallel system-one that’s resilient, inclusive, and built for its own needs. When a farmer in Punjab uses a solar-powered irrigation controller made in Rajasthan, or a nurse in Bihar uses a portable ECG machine designed in Hyderabad, that’s real technological advancement. It’s not measured in gigaflops or patent counts. It’s measured in lives improved, jobs created, and supply chains that don’t break when a ship gets stuck in the Suez Canal.
