India’s Electronics Industry Aims for $500 Billion in manufacturing output by 2030
India’s electronics industry is poised for a significant transformation. A recent report from TeamLease outlines an ambitious goal: to reach $500 billion in manufacturing output by 2030. This target represents a fivefold increase in production over the next five years, necessitating a substantial effort to close a $400 billion production gap. Currently, the industry generates approximately $101 billion in domestic production, with mobile phones contributing a remarkable 43% of this output. Other sectors, such as consumer and industrial electronics, electronic components, and emerging segments like auto electronics and LED lighting, also play crucial roles in this growth narrative.
Current Landscape of India’s Electronics Sector
The Indian electronics sector is diverse, with various segments contributing to its overall output. Mobile phones dominate the landscape, accounting for nearly half of the total production. Following closely are consumer and industrial electronics, each contributing 12%. Electronic components make up 11%, while emerging areas like auto electronics and LED lighting contribute 8% and 3%, respectively. Wearables and hearables, along with PCBAs, each account for 1% of the production.
This diverse production base highlights the sector’s potential for growth. However, achieving the $500 billion target will require not just increased output but also a significant expansion of the workforce. The projected growth trajectory is expected to create around 12 million jobs by 2027. This includes 3 million direct jobs and 9 million indirect roles. The direct employment opportunities will span various fields, including nearly 1 million engineers and 2 million ITI-certified professionals. Additionally, there will be a demand for specialists in high-demand areas such as artificial intelligence, machine learning, and data science.
Bridging the Talent Gap
Despite the promising outlook, the electronics sector faces a critical challenge: a significant talent gap. This shortage of skilled professionals could hinder the industry’s progress toward its ambitious manufacturing goals. To bridge this gap, it is essential to align workforce skills with industry needs, particularly in high-demand areas like semiconductors and electromechanical parts.
The talent pool must be cultivated from specialized fields such as Electronics and Electrical streams, ITI-certified professionals, and other technical domains. General education streams can also support indirect roles within the industry. AR Ramesh, CEO of TeamLease Degree Apprenticeship, emphasizes the importance of targeted skilling programs. He notes that scaling apprenticeship enrollments, which are currently growing at a 55% CAGR, will be crucial. The goal is to reach 1 million apprentices by 2027 and eventually 2 million.
Strategic Approaches for Sustainable Growth
To realize its vision of becoming a global leader in electronics manufacturing, India must adopt a multi-faceted approach. This includes investing in skilling programs, fostering industry-academia partnerships, and enhancing infrastructure and policy support. Increasing ITI enrollment, establishing in-house training centers, and expanding apprenticeship opportunities will be pivotal in addressing the talent shortage.
Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, highlights the need for capacity building. He advocates for employers and industries to set up in-house training centers and collaborate with academic institutions through Work-Integrated Learning Programs (WILP) and degree apprenticeships. Scaling reskilling and upskilling initiatives for over 50% of the workforce, alongside robust capacity-building measures, will empower India to bridge the skills gap and drive sustainable growth.
India’s electronics industry stands at a critical juncture. With the right investments in talent development and strategic partnerships, the sector can achieve its ambitious goals and solidify its position as a global leader in electronics manufacturing.
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