India's Electronics Industry Growing Rapidly, Expected to be worth ₹8 lakh crore by 2030

The Indian Electronics System Design and Manufacturing (ESDM) industry is rapidly expanding across design, engineering, and production. It is projected to grow at a CAGR of 20 to 25 percent over the next five years, reaching ₹7 to 8 lakh crore by 2030. According to a CareEdge Research report, the growing demand for smartphones will drive the ESDM market's growth by FY2025.

Cost Improvements in ESDM Driving the Industry

Tanvi Shah, Senior Director at CareEdge Research, says that global manufacturers establishing bases in India, government policy support, regional manufacturing hubs, and cost improvements in ESDM are driving the industry's growth. She states that the main factors driving the ESDM industry will be: first, the growing demand for smartphones in the domestic market, second, government policy support, and third, the country's next young generation, which is propelling India towards global electronics leadership.

Growing smartphone demand will change the landscape of the ESDM industry.

According to the report, the smartphone segment was worth approximately ₹2 lakh crore and is projected to grow at an annual rate of 23 to 25 percent over the next five years. Driven by smartphones, India's ESDM market is projected to double to ₹7 to 8 lakh crore by 2030. This growth will be driven by growing demand in the domestic market, government policy support, and strong participation from global and local manufacturers, along with increasing exports. The report believes that affordable smartphones and low-cost data plans have made internet access accessible to everyone. There is strong demand for smartphones and connected devices in metros as well as Tier 2 and 3 cities.

Impact of Digital India and BharatNet initiatives visible

According to the report, increasing smartphone and broadband penetration, government initiatives like Digital India and BharatNet, along with the need for large-scale electronics manufacturing and assembly services, are further strengthening the industry. The consumer electronics market is expected to grow in the future, boosted by the recent GST reduction on appliances such as TVs, ACs, refrigerators, and dishwashers. These appliances are now taxed at 18 percent (down from 28 percent previously). In comparison, smaller consumer electronics are taxed at 12 percent. These reductions will improve affordability, increase sales, and boost investment in domestic manufacturing and retail.

Policy incentives and tech innovation will drive growth

According to the report, India's electronics manufacturing ecosystem has grown rapidly over the past few years. Praveen Pardesi, Associate Director at CareEdge Research, says this is primarily due to government incentive schemes (PLI, NPE, Digital India), global IM outsourcing, and the emphasis on a skilled workforce. Additionally, technology-driven expansion has been driven by demand for AI and IoT. Government policy support and growing exports, along with strong participation from global and local manufacturers, will accelerate the industry.

The next generation will propel India towards global electronics leadership.

The report states that government data shows that India ranks third globally in economy-wide digitization and 12th among G-20 countries in terms of individual user digital adoption. This digital economy is growing twice as fast as the overall economy, contributing nearly a fifth of national income by 2029-30. The increasing adoption of digital technologies by youth is driving a steadily increasing demand for advanced devices and electronic infrastructure. This will help propel the electronics sector forward in the future.

The country's electronics industry is undergoing a major transformation.
Rajiv Kaustub, an expert on AI and the electronics industry, says that the country's Electronics Component Manufacturing Scheme has received investment proposals worth ₹1.15 lakh crore. This is a tremendous opportunity for the electronics industry. This will benefit small and medium-sized industries and create new employment opportunities. He states that the country's electronics industry is undergoing a major transformation, establishing the country as a leading global hub for electronic system design and manufacturing. India's electronics industry has registered a compound annual growth rate (CAGR) of 21 percent over the past five years, reaching ₹16.5 lakh crore in fiscal year 2025. This is supported by government schemes, strong domestic demand, and a favorable policy environment.

According to a NITI Aayog report, the Indian electronics industry will continue its strong growth trajectory and is projected to reach ₹36 to 40 lakh crore by 2030. This growth momentum is being driven by government programs aimed at increasing domestic manufacturing capacity and gradually reducing dependence on imports. The growing demand for next-generation technologies such as electric vehicles, IoT devices, semiconductors, and AI solutions will further accelerate the industry's growth.

ESDM Scheme Receives Investment Proposals Worth ₹1.15 Lakh Crore

On October 2, 2025, Union Minister of Electronics and Information Technology, Ashwini Vaishnav, informed that the Electronics Component Manufacturing Association, under the government, has received investment proposals worth ₹1.15 lakh crore. This scheme was launched to promote electronics component manufacturing in the country. PDF applications for the scheme closed on September 30, and the government has received investment proposals worth ₹1,15,351 crore under the scheme. The government envisions receiving investments worth approximately ₹59,000 crore under the scheme and has also opened applications for capital equipment acquisition. The central government approved the Electronics Component Manufacturing Scheme in March 2025 for six years with a budget of ₹22,919 crore.

Industry Data

According to reports, India's ESDM market is estimated to be worth ₹3.1 lakh crore in FY2025. The electronics market is worth ₹16.5 lakh crore, and the smartphone market is ₹1.9 lakh crore. In terms of value share, smartphones are projected to account for 62 percent of the market in FY2025, followed by consumer electronics at 16 percent, automotive at 4 percent, aerospace at 2 percent, industrial and industrial automation at 1 percent, renewables at 1 percent, and mass transportation at 4 percent.