India's Tech Manufacturing Journey
India has seen exponential growth in the personal technology sector over the last few years. Fuelled by the increased demand after the pandemic as institutions across the board adopt a hybrid approach to their functioning, majorly educational and professional institutions, India has reported unprecedented numbers in the personal technology space. As reported by Statista Market Insights, the consumer electronics market in India has reported growing revenue year on year since 2020, growing from 58.9 billion USD in 2020 to 85.4 billion USD by 2023. “The market is projected to grow annually by 5.93%, representing a compound annual growth rate (CAGR) for the period of 2024-2029,” as reported by Statista as a part of their Market Insights report about consumer electronics in India.
This increased demand has also led a lot of Indian companies to become active in the Indian market and overseas companies to invest in the consumer electronics manufacturing sector. This growth of the Indian electronics manufacturing sector is thanks to the increased outsourcing of manufacturing by OEMs from across the globe. Samsung set the ball rolling back in 2018, as they inaugurated the world’s largest mobile factory in India. Since then, Apple has followed suit, and there are brands across the spectrum flocking to India.
Multiple brands, including Indian manufacturers, have made the push ever since to add to the growth of India’s consumer electronics manufacturing landscape. We have seen the rise of brands like boAt, Boult, Mivi, and the like, who have ensured that their Made in India products have hit the shelves and are providing Indian consumers with value-for-money tech that is made in their own backyard.
Governments, both at the state and central level, have ensured that brands looking to set up their manufacturing bases in India are greeted with a friendly environment, be it in terms of infrastructure or monetary and developmental support from the Indian government’s institutions. Back in 2015, we had done a cover story in the magazine titled “Make in India, Make Money”. There, our editorial team had pointed out several factors behind the Make in India push and how making consumer electronics in India was more viable than ever for Indian and overseas companies alike. You can have a look at that issue of Digit Magazine here – https://bit.ly/DGTAug2015
Ever since, the pillars of the Indian manufacturing sector have grown taller and stronger. Several reports and interactions with industry experts point towards the availability of brilliant minds with engineering acumen and support from the governments to be one of the biggest drivers of growth in this space. If you look at our reportage from Taiwan Expo 2024, you will notice that market leaders from there also hint towards the same.
Given the scale of the Indian market and the potential it holds, brands across the board in the world of consumer electronics have flocked to make their products in India and for Indian consumers. We have seen brands like Sony tuning their audio products for the Indian market, with other manufacturers in the space, like LG, also following suit. In the world of smartphones, India-specific launches and SKUs are also more common than ever.
Startups that are collaborating with global players, the growth of 5G has empowered Indian innovators and consumers at all levels with information, and the improved research and development facilities the country, are some of the key motivating factors for global brands to set their foot in India, and are also promoting Indian minds to stay back and setup base in India.
The increased focus of Indian and global brands on manufacturing tech in India will contribute to India’s steady rise towards the top of the manufacturing landscape. This will have a multi-fold effect for the consumers in India. They will have access to the latest technology at considerably cheaper prices, launches will see an uptick and will be quicker, and there will be plenty of options to choose from. As a ripple effect of this, we will also see improvements in the post-sale consumer support and repairs in the country, as components that would otherwise be sourced from abroad would be readily available from the manufacturers and can be harvested from older products as well.
One thing that we, as consumers, would need to be mindful of is the recycling of consumer electronics. There are plenty of examples from regions across the globe of how the increased manufacturing potential has led to uncontrolled generation of e-waste which has affected the locals. So, as we grow towards being the consumer electronics manufacturing hub of the world, let’s be mindful of the e-waste that we generate and ensure that we are using our electronics in the most efficient way possible, and when the time comes, getting rid of it in the most environment friendly way that we can.
