India's Electronic Components Demand Set to Soar to USD 240 Billion by 2030

A CII report highlights that India's demand for electronic components and sub-assemblies is anticipated to grow from USD 45.5 billion in 2023 to USD 240 billion by 2030, driven by increased electronics production. The report suggests policy interventions, higher incentives, and FTAs to boost domestic manufacturing and reduce import dependence.

India's demand for electronic components and sub-assemblies is projected to escalate dramatically, reaching an estimated USD 240 billion by 2030. Key components like motherboards, lithium-ion batteries, and camera modules currently largely imported, are central to this growth, according to a Confederation of Indian Industry (CII) report released on Sunday.

The report urges the government to revise its electronic components production-linked incentive schemes, suggesting increased incentives ranging between 35% and 40% to decrease import reliance. In 2023, component demand stood at USD 45.5 billion, supporting electronics production worth USD 102 billion. By 2030, this is expected to support USD 500 billion in electronics production.

Highlighted components such as PCBAs, enclosures, and displays are identified as high priorities, projected to grow at a compound annual growth rate of 30%, culminating in USD 139 billion by 2030. However, India's current import dependency poses a significant challenge. The report calls for fiscal support schemes, aggressive pursuit of free trade agreements, and SPECS 2.0 subsidy support to enable domestic manufacturing competitiveness.

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