Tech Giants Invest Billions In India's Electronics Sector, Aiming for $300 Bn Growth By 2025-26

New Delhi, Dec 18 (KNN) Over the last decade, substantial progress has been witnessed in India’s four key consumer electronics sectors—mobile phones, consumer electronics, IT hardware, and electronic components—which collectively contribute to over 70 percent of India's domestic manufacturing portfolio, reported ET.

The rapid pace of growth has prompted major technology companies to contemplate investments amounting to billions of dollars in the country, as per ET.

The nation is swiftly evolving into a hub for electronics manufacturing, with the sector anticipated to reach a valuation of USD 300 billion by the fiscal year 2025-26, reported ET.

Companies ranging from Apple and Foxconn to the US-based Micron Technologies and the domestic major Tata Group are strategically leveraging domestic capabilities.

Their objective is to attain supply chain diversification and enhance production scale by engaging in manufacturing activities within the country.

Foxconn, the Taiwanese contract manufacturer, has secured authorisation for an additional investment of at least USD 1 billion in a facility in India designated for the production of Apple products.

This supplementary investment is in addition to the previously earmarked USD 1.6 billion for the expansive 300-acre site near the Bengaluru airport.

Following the acquisition of Wistron's India operations by the Tata Group for USD 125 million, Tata Electronics is set to become the inaugural Indian entity to engage in the manufacturing of new Apple iPhones within the country.

This development stands as a significant boost to the government's 'Make in India' initiative.

As per reports, Apple intends to boost its investment in the country to an estimated USD 40 billion within the forthcoming four to five years.

Notably, Apple has already surpassed the USD 7 billion production milestone in the preceding fiscal year.

Based on estimates from the Department of Commerce and the India Cellular and Electronics Association (ICEA), IANS reports a surge in mobile phone exports to USD 5.5 billion during April-August, compared to USD 3 billion in the same period of FY22-23

(KNN Bureau)