New Delhi, Jun 10 (KNN) India is rapidly emerging as a global hub for electronics manufacturing, driven by incentives fuelling major investments from tech giants like Apple, Samsung and Lenovo.

A new report from BNP Paribas forecasts India's domestic electronics manufacturing services revenues will surge from USD 25 billion in 2023 to USD 55 billion by 2027.

This explosive growth is being propelled by a combination of factors. Global brands are expanding production capabilities in India to reduce reliance on imports.

Apple alone could invest USD 40 billion over the next four years to significantly boost Indian manufacturing. Meanwhile, Samsung eyes laptop assembly to complement its existing smartphone operations.

The Indian government has encouraged this manufacturing renaissance through import duties on finished goods and lucrative production-linked incentive (PLI) schemes.

Lenovo now plans to manufacture servers locally, capitalizing on the PLI for IT hardware. Overall, the total addressable market for domestic manufacturers could rocket from USD 40 billion in 2023 to USD 100 billion by 2027 as imports plummet.

"For India to become a key global value chain player in electronics, we need a mission-mode approach with clear goals to quadruple the sector's output within five years," stated Pankaj Mohindroo, Chairman, India Cellular and Electronics Association.

He stressed the importance of regulatory predictability and ease of doing business.

Industry leaders are requesting enhanced PLI support for components, sub-assemblies, wearables and hearables to drive domestic value addition from 18 per cent currently to 35-40 per cent.

"We must make India the best GVC location and build home-grown champions," Mohindroo urged.

(KNN Bureau)