India’s electronics sector is rapidly evolving from assembly-led operations to full-scale manufacturing, driven by initiatives such as the PLI scheme, increased R&D investments, and robust infrastructure. At the 5th Electronics Supply Chain Summit 2025, Atul Lall, Vice Chairman and Managing Director of Dixon Technologies and Immediate Past President of ELCINA, highlighted in a conversation with Nijhum Rudra of Elets News Network (ENN) how various states are fostering supportive ecosystems and focusing on high-growth areas like semiconductors and mobile manufacturing.

How is the Indian electronics industry transitioning from assembly to full-scale manufacturing to enhance competitiveness? 

The Indian electronics industry is shifting from assembly to full-scale manufacturing by investing in local R&D, skill development, and advanced production facilities. Government initiatives such as the PLI scheme incentivise domestic manufacturing, thereby reducing import dependency. This transition fosters innovation, creates high-value jobs, and strengthens supply chains. By focusing on quality and scale, India is positioning itself as a global manufacturing hub. Collaboration with international tech firms further boosts competitiveness. The goal is to build a self-reliant ecosystem for electronics production.

What role do states play in strengthening India’s electronics manufacturing competitiveness? 

States are pivotal in creating investor-friendly environments through tailored policies, land allocation, and infrastructure development. They offer incentives like tax breaks and subsidies to attract manufacturers. States like Karnataka, Tamil Nadu, and Uttar Pradesh are leading by developing electronics clusters. These clusters provide shared resources, reducing costs and enhancing efficiency. By fostering skill development programs, states ensure a ready workforce. Their proactive role accelerates India’s global electronics market share.

Which segments of the electronics industry should India prioritise for accelerated growth? 

India should focus on semiconductors, mobile devices, and consumer electronics for rapid growth. Semiconductors are critical for self-reliance, given their role in all electronics. Mobile manufacturing benefits from high domestic demand and export potential. Consumer electronics like smart TVs and wearables cater to rising middle-class consumption. Investing in these segments leverages India’s large market and skilled labour. Strategic partnerships and innovation will drive exponential growth.

How can India balance cost competitiveness with innovation in electronics manufacturing? 

India can balance cost and innovation by leveraging economies of scale and government incentives like the PLI scheme. Investing in automation and advanced manufacturing reduces production costs while maintaining quality. R&D hubs and partnerships with global tech leaders foster innovation. Skilling programs ensure a workforce capable of cutting-edge production. Infrastructure upgrades, like electronics parks, lower operational costs. This dual focus positions India as a cost-effective, innovative manufacturing hub.

How significant is the new component manufacturing scheme for India’s electronics industry, and what impact do you foresee on global competitiveness?

The component manufacturing scheme is a pivotal milestone for India’s electronics industry. By enabling the production of critical components like displays, batteries, sensors, and mechanicals domestically, it significantly enhances the competitiveness of Indian-made devices, particularly mobiles. This scheme positions India as a key player in the global value chain (GVC), allowing us to not only meet domestic demand but also serve global markets. The scheme’s prudent design, with its flexibility and ease of doing business, was developed through extensive industry consultation, ensuring strong participation and enthusiasm from stakeholders. This will drive India’s electronics industry toward greater global prominence.

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The scheme is described as horizontal, supporting multiple sectors beyond mobiles. What gaps need to be addressed to make India a comprehensive manufacturing hub, and how can the industry scale up?

The horizontal nature of this scheme is a game-changer, as it supports not just mobile manufacturing but also sectors like automotive electronics, medical electronics, and aerospace. To become a true manufacturing hub, we must address gaps in innovation, quality, and R&D investment. The industry needs to aim for six-sigma quality standards and focus on rapid scaling, new product launches, and meeting global customer expectations. With government support and industry commitment, we can leverage this vast canvas to close these gaps, fostering a robust ecosystem that serves diverse sectors and elevates India’s global manufacturing presence.

Dixon Technologies is poised to be a major contributor to this scheme. Can you share your company’s plans and timeline for engaging with the component manufacturing initiative?

Dixon Technologies is deeply committed to this scheme. We’ve already rolled out a display module project and are evaluating three to four additional component categories. While it’s premature to share specifics due to our silent period, we are actively pursuing this opportunity with vigour. We plan to finalise our project details and file our application within the next 90 days, aligning with the scheme’s timeline. Our vision is to strengthen our role as a leading device manufacturer while expanding our component manufacturing capabilities to support India’s growth as a global electronics hub.

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