The India’s Electronic System Design and Manufacturing (ESDM) industry is projected to double to between Rs 7 lakh crore and Rs 8 lakh crore by 2030, driven primarily by the rapid growth of smartphones, according to CareEdge Ratings.
The sector, valued at Rs 3.1 lakh crore in FY25, is expected to grow at a compound annual rate of 20–25 per cent over the next five years. Smartphones accounted for around 62 per cent of the market in FY25 at Rs 2 lakh crore. CareEdge forecasts the segment to expand at an annual rate of 23–25 per cent through FY30.
Nearly all smartphones sold in India are now manufactured domestically, with production crossing 325 million units in FY25. Exports made up 36 per cent of total production, positioning India ahead of China as the leading supplier of smartphones to the United States in the second quarter of 2025.
Government schemes, including the Production-Linked Incentive (PLI) scheme, SPECS, and the Electronics Component Manufacturing Scheme (ECMS), have attracted global electronics manufacturers to expand operations in India. The phased manufacturing programme and digital initiatives are expected to deepen the component ecosystem and boost local value addition.
CareEdge highlighted that heavy reliance on smartphones poses a concentration risk. A slowdown in global demand or delays in localisation of high-value components could affect growth.
However, adjacent sectors such as automotive electronics, medical devices, and Internet of Things hardware are emerging as new growth drivers.
“India’s ESDM industry is well positioned to leverage policy support and shifting global supply chains. Sustaining momentum will depend on strengthening upstream components and semiconductor capacity,” CareEdge Ratings said. |
