Indian Electronics Ecosystem Expands With Domestic Demand
India’s electronics and hardware manufacturing sector is entering a “Second Wave,” marked by deeper domestic demand, stronger engineering capabilities, and the gradual development of a full-fledged manufacturing ecosystem. Unlike earlier growth phases driven primarily by policy incentives or headline factory announcements, this wave is underpinned by sustained, design-led demand across industrial, infrastructure, and mobility segments.
The expansion of India’s electronics ecosystem is closely tied to predictable, long-cycle demand rather than short-term consumer upgrades. Large-scale programs such as national smart metering initiatives, renewable energy rollouts, and network modernization projects are generating steady need for microcontrollers, communication modules, power systems, and industrial-grade components. Domestic players, including Genus Power and Secure Meters, are scaling full system capabilities, while telecom infrastructure providers such as Tejas Networks are supporting design-driven electronics adoption alongside global suppliers.This evolution is facilitated by a decade of cumulative policy support. Initiatives like Make in India and Digital India have transformed electronics from a trade-focused sector into a strategic industrial priority. Aggregated demand programs, such as nationwide LED deployments, demonstrated the potential of policy-led market creation to stimulate domestic manufacturing, enhance quality, and reduce costs. Subsequent schemes—including Production-Linked Incentives (PLI) and sector-specific deployment programs—have strengthened industrial adoption and anchored long-term electronics consumption.
Domestic electronics manufacturing services (EMS) providers are increasingly moving beyond basic assembly. Companies such as Dixon Technologies, Kaynes Technology, VVDN, and Syrma SGS are integrating system-level design, testing, and reliability qualification, reflecting the ecosystem’s growing depth. PCB manufacturing, tooling, enclosures, and component testing capabilities are being developed in tandem, ensuring that India’s electronics supply chain is not only present but increasingly resilient and localized.The mobility and electrification sectors are also driving ecosystem expansion. Established and emerging players, from Tata Motors and Mahindra to EV-focused firms like Ola Electric and Ather Energy, are creating sustained demand for power electronics, battery management systems, and vehicle software. Appliances, HVAC, and industrial electronics further anchor domestic consumption, making India a central node in Asia’s broader electronics landscape.
While infrastructure gaps and skill shortages remain, the trajectory is increasingly clear: India is evolving from a consumption-driven market to a design- and ecosystem-driven manufacturing hub. For urban planners and industrial developers, this signals an opportunity to align infrastructure, workforce development, and industrial policy with the needs of a maturing electronics sector. The Second Wave demonstrates that sustainable, high-value manufacturing in India is no longer aspirational—it is becoming structurally embedded, supporting both economic growth and technology-enabled urbanisation.
