India Investor Conference 2026 - Deep dive into the Electronics Manufacturing Industry

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How India’s Electronics Manufacturing Industry Is Moving Beyond Assembly to Become a Global Design and Engineering Hub

At the India Investor Conference 2026, leading voices from the electronics manufacturing ecosystem shared their perspectives on the opportunities, challenges, and long-term vision for the sector. The discussion featured Atul Lall, Managing Director and Vice Chairman of Dixon Technologies, Aravind Melligeri, Executive Chairman and Chief Executive Officer of Aequs, Rajesh Agarwal, Founder of Micromax Informatics, Jasbir Singh Gujral, Managing Director of Syrma SGS Technology, and was moderated by Rabindra Srikantan, Founder and Managing Director of ASM Technologies.

The First Phase of Electronics Manufacturing Has Been Achieved

According to Atul Lall, every industry follows a journey. In electronics manufacturing, strong policy support from the Government of India has helped the industry achieve its first major milestone.

India has moved from a stage where domestic demand for electronics products was largely met through imports to a stage where products sold in the country are increasingly manufactured locally.

The next phase involves deeper value addition, acquiring intellectual property in selected categories, and building globally competitive capabilities.

He highlighted the importance of engineering talent and scientific expertise in areas such as camera modules, lidar, tools and dies, optics, radio frequency technologies, and antennas. Building these capabilities will require investment from industry along with continued policy support and access to capital.

The Real Work Begins After Assembly

Jasbir Singh Gujral noted that the industry has benefited from years of effort by pioneers who operated when manufacturing was not actively encouraged.

He emphasized that assembly remains an essential foundation for the electronics industry. However, long-term growth cannot rely on assembly alone.

With the Electronic Components Manufacturing Scheme helping develop a component ecosystem, the focus is now shifting toward materials, equipment, talent development, and research and development.

A key challenge, according to him, is capability building. While funding may become more accessible as the industry gains credibility, developing skilled talent requires time and sustained effort.

He also pointed out that research and development requires significant investment. Given the industry's current profitability levels, collaborative efforts between industry players and the government will be necessary to build strong research capabilities over the coming decades.

Why Design and Engineering Matter More Than Ever

Aravind Melligeri approached the discussion from the perspective of component manufacturing and precision engineering.

He explained that manufacturing evolves through multiple stages, beginning with build-to-print and build-to-spec processes before moving into product development, prototyping, design, and engineering.

India has already achieved scale in final assembly. The next opportunity lies in developing a stronger component ecosystem, particularly on the mechanical side.

He highlighted that consumer electronics manufacturing presents unique challenges because product requirements often evolve as products move toward mass production. This creates a need for greater flexibility, faster response times, and stronger local capabilities.

According to him, India must build the depth required to support these changes efficiently if it wants to capture a larger share of value creation within the electronics supply chain.

Can India Become the Manufacturing Kitchen for the World?

Rajesh Agarwal believes the industry remains in its early stages and has significant room for growth.

He described assembly as the starting point of manufacturing and stressed the importance of investing in design, research and development, and component manufacturing.

He raised an important question for the industry. Can India become the manufacturing kitchen for the world while also serving its large domestic market?

According to him, current value addition levels are around 16 to 17%. He believes this can increase substantially over the coming years through focused investment in components, mechanics, camera modules, displays, and other key areas.

With supportive policies already in place and strong demand drivers, he sees a significant opportunity for industry participants willing to invest in the next phase of growth.

Growth Opportunities Extend Far Beyond Mobile Phones

The panel agreed that mobile phones have been the largest opportunity within electronics manufacturing and have played a major role in building India's manufacturing base.

However, Atul Lall emphasized that future growth will not depend on mobile phones alone.

He highlighted several areas that could become major growth drivers, including information technology products, telecom equipment, customer premises equipment devices, routers, fixed wireless devices, set-top boxes, data center components, camera modules, automotive applications, servers, artificial intelligence servers, and consumer durables.

He also pointed out that many of these categories offer opportunities for local design, higher value addition, and stronger operating margins.

Rajesh Agarwal echoed this view and said that information technology products remain largely untapped from a manufacturing perspective. He also identified telecom, automotive electronics, memory modules, consumer electronics, and data centers as major opportunities for future expansion.

Execution Will Determine Who Wins

While the demand outlook remains strong, Jasbir Singh Gujral believes execution will separate successful companies from the rest.

He noted that India currently spends significantly less on electronics per capita compared to global averages, suggesting substantial room for future demand growth.

For manufacturers, the challenge lies in managing growth efficiently. Rapid expansion requires disciplined cash flow management, productivity improvements, and a clear understanding of core competencies.

He encouraged companies to focus on areas where they possess genuine strengths instead of attempting to participate in every segment.

He also stressed that long-term success will depend on integration with global supply chains. To achieve this, companies must strengthen their quality systems, manufacturing processes, information technology infrastructure, and customer engagement practices.

Building a Stronger Domestic Supply Chain

The discussion also focused on supply chain development and local value addition.

Aravind Melligeri explained that component manufacturing requires substantially higher capital investment than assembly operations because value creation comes from labour, machinery, and manufacturing processes.

He emphasized that India must develop domestic capabilities not only in component production but also in raw materials and upstream manufacturing inputs.

Drawing from his experience in aerospace manufacturing, he explained that creating a fully localized value chain requires patience and long-term commitment. While such journeys can take years, they help create sustainable competitive advantages and stronger relationships with global customers.

Managing a More Complex Global Environment

The panel acknowledged that geopolitical tensions and supply chain disruptions are becoming a permanent feature of the business environment.

Jasbir Singh Gujral described these disruptions as part of the new normal and stressed the importance of learning from customers, competitors, and industry partners.

He encouraged greater collaboration across the industry, particularly in areas where companies possess specialized expertise.

Atul Lall agreed that collaboration will become increasingly important. He observed that manufacturing leaders must now track developments across commodity markets, currencies, interest rates, and global political events because each of these factors can directly influence business outcomes.

How India Compares with Other Manufacturing Destinations

When discussing India's position relative to countries such as Vietnam and Thailand, Rajesh Agarwal highlighted the importance of partnerships and ecosystem development.

He believes collaboration with international companies can help accelerate the growth of India's component manufacturing ecosystem and shorten the learning curve for domestic companies.

India's large domestic market remains a significant advantage. According to him, a strong component ecosystem combined with collaborative partnerships can strengthen India's competitiveness and support long-term growth.

The Next Decade Could Be a Golden Era for Indian Manufacturing

The panel concluded on an optimistic note.

Atul Lall projected that India's electronics industry could grow from approximately 150 billion dollars to 500 billion dollars, supported by a component industry worth around 150 billion dollars and increasing global competitiveness.

Jasbir Singh Gujral described the coming decade as a potential golden era for Indian manufacturing. He also called for greater recognition of investments in innovation and research and development, noting that creating an innovation-driven economy requires patience and a long-term perspective.

Aravind Melligeri pointed to the gap between India's share of the global population and its share of the global electronics supply chain. He believes the opportunity exists for India to capture a much larger role if companies, investors, and customers work together effectively.

Rajesh Agarwal concluded by reiterating the importance of building design capabilities and investing in research and development. In his view, if India develops the foundational capabilities required for innovation-led manufacturing, growth will naturally follow.