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India Aims for $500B Electronics Production by FY31

By Business DeskIndia Aims for $500B Electronics Production by FY31

India targets $500B electronics production by FY31, with component manufacturing set for a 14x surge, reaching $150B. Mobile production also to expand.

India is targeting a massive **USD 500 billion** in total electronics production by fiscal year 2031, according to a recent report by Kotak Mutual Fund. This ambitious goal is primarily fueled by a projected **14-fold** increase in electronic component manufacturing within the country.

Electronic Component Surge

The significant expansion in electronic component production represents a strategic pivot towards strengthening India’s manufacturing base. This sector is set to experience rapid growth, becoming a foundational element of the nation’s broader electronics ambitions.

  • Electronic component production is projected to grow from **USD 10.5 billion** in FY24.
  • It is expected to reach **USD 150 billion** by FY31.

Mobile Phone Manufacturing Expands

While electronic components lead the growth rate, mobile phone production is also slated for substantial expansion. This segment continues to be a major contributor to India’s overall electronics output.

  • Mobile phone production is anticipated to more than triple from **USD 51 billion** in FY24.
  • It is forecast to hit **USD 159 billion** by FY31.

Diverse Electronics Growth

Beyond core components and mobile phones, several other electronics categories are poised for considerable growth, demonstrating India’s diversifying manufacturing capabilities. These sectors collectively contribute to the overarching target.

  • Consumer electronics, including televisions and audio products, are projected to increase from **USD 13 billion** to **USD 36 billion**.
  • IT hardware, encompassing laptops and tablets, is expected to rise from **USD 5 billion** to **USD 32 billion**.
  • The wearables and hearables market is set to expand significantly, from **USD 2.5 billion** to **USD 38 billion**.
  • Auto electronics could grow from **USD 8 billion** to **USD 33 billion**.
  • Telecom equipment production is estimated to reach **USD 15 billion** from **USD 3.5 billion**.
  • The ‘Others’ category is projected to increase from **USD 21.5 billion** to **USD 37 billion**.

These projections from Kotak Mutual Fund underscore India’s expanding capabilities and strong ambitions across a wide spectrum of electronic products, solidifying its position in global manufacturing.

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