Electronics System Design & Manufacturing (ESDM) Industry in India

Investments/ Developments

On October 16, 2025, global technology firms LG Electronics and Samsung Electronics announced major R&D efforts in India, leveraging domestic engineering talent in semiconductor design, system-on-chip and AI-enabled technologies. The move highlights India’s transition from cost arbitrage to high-end capability, supported by government schemes such as the Semicon India Programme, Design Linked Incentive (DLI) Scheme and Chips to Startups (C2S) Scheme.

On July 17, 2025, Tata Electronics and German firm Robert Bosch GmbH signed a Memorandum of Understanding to collaborate on advanced chip packaging and semiconductor manufacturing at Tata’s new assembly facility in Assam and a foundry in Gujarat. They will also explore local electronic manufacturing services, especially for vehicle electronics.

On June 23, 2025, India’s central government approved Micron Semiconductor’s establishment of a Special Economic Zone in Sanand, Gujarat, covering 37.64 hectares with an investment of Rs. 13,000 crore (US$ 1.51 billion), aimed at boosting semiconductor and electronics manufacturing.

By July 2025, Renesas Electronics, in collaboration with CG Power and Stars Microelectronics, is set to complete its pilot Outsourced Semiconductor Assembly and Test facility in Sanand, Gujarat, with the first chip batch expected by mid-2026 and full production by October 2027, backed by a US$ 222 million investment.

On May 14, 2025, the Indian Union Cabinet approved the HCL-Foxconn joint venture to build a semiconductor plant near Jewar Airport, Uttar Pradesh, with a Rs. 3,706 crore (US$ 433.6 million) investment to produce display driver chips, targeting operational status by 2027.

On March 18, 2025, Malaysia’s Deputy Minister of Investment, Trade, and Industry, Mr. Liew Chin Tong, expressed interest in deeper collaboration with India’s semiconductor sector, highlighting areas like equipment, assembly, and testing during his visit to India.

Reliance Industries is set to build the world’s largest data center in Jamnagar, Gujarat, marking a major step in its entry into India's artificial intelligence (AI) sector. The company has procured AI semiconductors from Nvidia to power this project following a collaboration announcement at October 2024 Nvidia AI Summit.

Apple is engaged in discussions with Bharat Forge to establish a partnership, potentially designating the company as a supplier for the manufacturing of components such as mechanical parts.

FollowG has introduced an AI-powered application for the Open Network for Digital Commerce (ONDC), designed to assist small and medium-sized electronics retailers by facilitating connections with buyers across the country.

Investment of Rs. 8,803 crore (US$ 1.06 billion) has been made under the scheme for promotion of manufacturing of electronic components and semiconductors.

The Ministry of Electronics and Information Technology has supported over 3,600 tech startups with a total fund disbursement of Rs. 212 crore (US$ 25.5 million).

India has made substantial cuts to import duties on mobile phones to enhance exports. In the last financial year, mobile phone exports reached Rs 1.2 lakh crore (US$ 14.4 billion), and this upward trend is expected to persist.

India emerged as the second-largest manufacturer of mobile phones in the world, with a production value of mobile devices reaching US$ 49.16 billion in 2024.

Prime Minister Mr. Narendra Modi participated in the event named India's Techade: Chips for Viksit Bharat and laid the foundation stone for three semiconductor projects valued at Rs. 1.25 lakh crore (US$ 14.97 billion) on 13th March 2024.

Major Government initiatives such as ‘Digital India’, ‘Make in India’ and supportive policies including a favourable FDI Policy for electronics manufacturing have simplified the process of setting up manufacturing units in India.

Union Budget 2023-24 has allocated Rs. 16,549 crore (US$ 2 billion) for the Ministry of Electronics and Information Technology, which is nearly 40% higher on year. The budget for FY23 had allocated Rs. 14,300 crore (US$ 1.73 billion) for the IT ministry.

The Indian startup ecosystem is experiencing a surge over the years, due to rapid technological advancements, increasing internet penetration, growing digital infrastructure, rising startup culture, government initiatives like Digital India, Make in India, and Startup India, as well as a large pool of skilled workforce.

India has witnessed an exceptional surge in the creation and funding of startups as the country has solidified its position as a major global centre for innovation and businesses. However, securing adequate funding remains a significant task for startups, often leading to survival challenges.

STPI Signs MoUs to strengthen tech startup ecosystem: AIC STPINEXT Initiatives (STPINEXT), a special purpose vehicle of Software Technology Parks of India (STPI), an organisation under the Ministry of Electronics and Information Technology (MeitY) has signed two memorandums of understanding (MoUs), one with HDFC Bank, and another with Excelpoint Systems India Pvt. Ltd., a niche technology player for fostering entrepreneurship and nurturing tech startups in the country. These partners would play a critical role in supporting and handholding the startups in the growth journey through technical guidance & assistance, mentoring, pitching to investors, funding support, and market connect & access etc.

Some of the investments/ developments in the Electronics System Design & Manufacturing (ESDM) sector in the recent past are as follows:

• The cumulative FDI equity inflow in the Electronics industry is Rs. 59,953.71 crore (US$ 8.03 billion) during the period April 2000-March 2026.
• As of December 2025, 136 projects with a total cost of Rs. 550 crore (US$ 57.82 million) have received funding, spanning emerging telecommunications technologies such as 5G/6G, AI, quantum communications, and others. Internet connections surpassed the 100 crore milestone in June 2025, reaching 100.29 crore, up from 25.15 crore in March 2014, representing a growth of 298.77%.
• Electronics exports has grown eight times from Rs. 38,000 crore (US$ 6.21 billion) in 2014-15 to Rs. 3.26 lakh crore (US$ 37.70 billion) in 2024-25. Electronics is now the third largest export category.
• Electronics exports increased by 24.7% to USD 48.0 billion in 2025–26, driven mainly by higher smartphone exports. The growth was supported by expanded domestic manufacturing capacity and strong demand from major international markets.
• India's electronics import bill crossed the US$ 100 billion mark for the first time in FY2025–26, reaching a record US$ 116.17 billion, a jump of 17.76% over US$ 98.65 billion in the preceding fiscal year.
• The Government inaugurated Rajasthan's first semiconductor ATMP/OSAT facility at Bhiwadi, developed by Sahasra Semiconductors with an investment exceeding Rs. 150 crore (US$ 15.89 million) under the SPECS scheme. The facility packages memory chips, LED driver ICs, eSIMs and RFID products, with plans to expand annual capacity to 400–600 million units.
• MeitY approved 29 additional projects under ECMS involving a projected investment of Rs. 7,104 crore (US$ 803.89 million) and expected production of Rs. 84,515 crore (US$ 9.56 billion).
• The approvals cover components for mobile phones, telecom, consumer electronics, automotive, strategic electronics and IT hardware, and are expected to create 14,246 direct jobs.
• The Quick Estimates of IIP stands at 156.6 in May 2025 against 154.7 in May 2024. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of May 2025 stand at 136.3, 154.3 and 216.0 respectively.
• The total budgetary allocation for the MeitY in the Union Budget FY26 stood at Rs. 26,026 crore (US$ 3.08 billion), reflecting an 18.64% increase over the budget estimates of FY25.
• The Ministry of Defence has finalized a contract with Bharat Electronics Limited, Bengaluru, for the procurement of Electronic Warfare Suites, aircraft modification kits, and their installation on Mi-17 V5 helicopters for the Indian Air Force, amounting to a total cost of Rs. 2,385 crore (US$ 282.1 million).
• On the 32nd foundation day of the department of Nuclear Magnetic Resonance (NMR) at AIIMS, New Delhi, the Society for Applied Microwave Electronics Engineering & Research (SAMEER) and AIIMS signed a MoU to foster collaborative research on medical devices. This agreement will facilitate joint efforts to develop high-field and low-field Magnetic Resonance Imaging (MRI) and NMR systems, while also promoting research in radio frequency, microwave systems, and related fields for medical applications.
• Competition Commission of India has approved the acquisition of certain shareholding of Pegatron Technology India Pvt. Ltd. (Pegatron India) by Tata Electronics Pvt. Ltd. (TEPL) and the transfer of TEL Components Pvt. Ltd. (TEL)’s business undertaking to Pegatron India.
• As of November 2023, applications of 27 IT hardware mobile phones manufacturers have been approved for Production Linked Incentive scheme (PLI).
• In March 2024, the Cabinet approved a massive Rs. 1.26 trillion (US$ 15.2 billion) investment in three semiconductor plants, signifying India's technological progress.
• India and Taiwan plan a US$ 7.5 billion chip plant deal, potentially boosting India’s semiconductor manufacturing with anticipated tariff reductions on components.
• Production-linked scheme (PLI) for large-scale electronics manufacturing (including mobiles) has seen investments worth Rs. 6,887 crore (US$ 833 million) (till June 2023), already surpassing the target for FY24 which was Rs. 5,488 crore (US$ 664.4 million).
• In July 2023, electronics maker Elista announced that it would invest Rs. 100 crore (US$ 12.1 million) in Andhra Pradesh to set up a manufacturing unit for Smart LED TVs, smartwatches, audio speakers, and large appliances.
• US CHIP design major Advanced Micro Devices (AMD) will invest up to US$ 400 million in India over the next five years and will set up its biggest design facility in the country.
• India's electronics sector is set to harness US$ 7 billion untapped revenue by 2035 via circular business model and policy pathways, industry stakeholders said. Current commitments and targets set the projected market size for these circular models at US$ 13 billion in 2035.
• India has overtaken China as the second-largest manufacturer of mobile devices in the world, according to a report released by the international research firm Counterpoint in August. The ‘Make in India’ initiative's mobile phone shipments from India exceeded 2 billion cumulative units and an annual growth rate of 23% was recorded.
• According to a report 'India Monthly Wearable Device Tracker' by International Data Corporation (IDC), "hundreds" of" smartwatch model launches in the first half of the calendar year 2023 contributed to India's wearable market's growth of 53.3% year-over-year (YoY). The companies shipped 57.8 million units of wearables like smartwatches, earwear, and eyeglasses to the market in the first half of CY23.
• The Ministry of Electronics and IT (MeitY) announced the exchange of signing of a Memorandum of Understanding (MoU) between the Centre for Nano Science and Engineering (CeNSE) at the Indian Institute of Science (IISc), Bengaluru and Lam Research India at the SemiconIndia in Gandhinagar.
• In November 2023, Mr. Ashwini Vaishnaw, Union Minister of Communications & IT said that 99% of mobiles used in India are made in India.
• Industrial robot accessories company Robot System Products (RSP) has announced plans to set up a subsidiary in India. The Indian entity Scandinavian Robot Systems India Private Limited has been registered in Chennai and will supply a range of industrial robot accessories to Indian customers.
• India Semiconductor Mission organized a three-day SemiconIndia 2023 Conference in July 2023 with the theme ‘Catalysing India’s Semiconductor Ecosystem’ in Gandhinagar, Gujarat. SemiconIndia 2023 witnessed the participation of industry leaders from major global companies such as Micron Technology, Applied Materials, Foxconn, Cadence and AMD, and the industry association, SEMI.
• India and Japan on July 20, 2023, signed an agreement for semiconductor design, manufacturing, equipment research, and talent development and to bring resilience to the semiconductor supply chain.
• A nine-member task force was constituted by the Ministry of Electronics and Information Technology (MeitY) in March 2023 with the primary goal of making India a ‘product developer and manufacturing nation’, as per a report. The members of the task force are some of the veterans from the Indian electronic industry, including HCL Founder Mr. Ajay Chowdhary, Lava International Chairman Mr. Hari Om Rai, and Boat Lifestyle Co-Founder Mr. Aman Gupta, among others.
• In March 2023, the Government approved the setting up of the Electronics Manufacturing Cluster (EMC) at Hubli-Dharwad in Karnataka, worth US$ 22 million (Rs. 180 crore) and is expected to create about 18,000 jobs.
• As global companies are leveraging the well-developed manufacturing system in the State, Tamil Nadu has emerged as one of the major electronics hardware manufacturing and exporting States in the country. The state is well positioned to achieve a US$ 100 billion ESDM industry in the next five years.
• The India Cellular and Electronics Association in February 2023 signed a memorandum of understanding with the Uttar Pradesh government to facilitate investments as the electronics manufacturing and skill hub to cater to domestic demand and exports. The government has set a target to achieve US$ 300 billion of electronics manufacturing by 2025-26, out of which US$ 75-100 billion of electronics manufacturing is expected from UP.
• Mitsubishi Electric India would invest Rs. 1,891 crore (US$ 230.9 million) to build an air conditioner and compressor factory in Tamil Nadu. This facility will generate over 2,000 jobs, 60% of which will be held by women.
• Vedanta Group signed memorandums of understanding (MoUs) with 20 Korean companies from the display glass industry for the development of an electronics manufacturing hub in India. The MoUs were signed at the 'Korea Biz-Trade Show 2023' event organised by KOTRA, in collaboration with Korea's Ministry of Trade, Industry, and Energy.