India’s electronics sector targets $500 bn output by 2030

India’s electronics industry is targeting US$ 500 billion in manufacturing output by 2030, requiring a fivefold expansion to close a US$ 400 billion production gap. This growth promises 12 million jobs by 2027, but a critical talent shortage looms.

India’s electronics industry is poised for a transformative phase, aiming for US$ 500 billion in manufacturing output by 2030, as highlighted in a report by TeamLease. To achieve this ambitious target, the sector must grow fivefold over the next five years, bridging a US$ 400 billion production gap. Currently, the industry’s domestic production stands at US$ 101 billion, with mobile phones contributing 43% of this output. Other significant contributors include consumer and industrial electronics (12% each), electronic components (11%), and emerging segments like auto electronics (8%), LED lighting (3%), wearables and hearables (1%), and PCBAs (1%).

This remarkable growth trajectory is expected to create 12 million jobs by 2027, comprising 3 million direct and 9 million indirect roles. Direct employment will span nearly 1 million engineers, 2 million ITI-certified professionals, and 200,000 specialists in high-demand domains such as artificial intelligence (AI), machine learning (ML), and data science. Non-technical roles will dominate indirect employment, highlighting the sector’s capacity to drive economic growth and foster diverse career opportunities.

Despite the promising outlook, the electronics sector faces a critical talent shortage that could hinder progress. This challenge extends beyond numbers, underscoring the need for skilled professionals to meet the sector’s ambitious manufacturing goals. Addressing this talent gap is essential to enhancing India’s standing in the global electronics supply chain.

Bridging this gap requires aligning workforce skills with industry demands, particularly in high-priority areas like semiconductors, electromechanical parts, and both passive and active components. The talent pool will primarily stem from specialized fields such as Electronics and Electrical streams, ITI-certified professionals, and other technical domains, with general education streams supporting indirect roles.

AR Ramesh, CEO of TeamLease Degree Apprenticeship, emphasized the importance of targeted skilling programs, noting, “Scaling apprenticeship enrollments, currently growing at a 55 per cent CAGR and projected to rise from 1 million apprentices in 2027 to 2 million, will create a robust talent pipeline aligned with industry needs.”

He further added, “To achieve its vision of becoming a global leader in electronics manufacturing, India must integrate skilling with strategic investments in infrastructure, policy measures, and innovation to propel the sector forward.”

Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, stressed capacity building, stating, “Employers and industries can strengthen this effort by setting up in-house training centres and collaborating with academia through Work-Integrated Learning Programs (WILP) and degree apprenticeships.”

He continued, “Scaling apprenticeship programs, reskilling, and upskilling initiatives for over 50 per cent of the workforce, alongside robust capacity-building measures, will empower India to bridge the skills gap and drive sustainable growth, solidifying its position as a global leader in electronics.”

To achieve its vision, India must adopt a multi-faceted approach involving investments in skilling programs, fostering industry-academia partnerships, and strengthening infrastructure and policy frameworks. Expanding ITI enrollments, establishing in-house training centres, and increasing apprenticeship opportunities will be critical. Scaling reskilling and upskilling efforts for over half the workforce, coupled with robust capacity-building measures, will empower the sector to overcome talent shortages and maintain its rapid growth trajectory.