Synopsis: This article explores India’s emerging electronics manufacturing hubs. It brings attention to the prominent firms, investments, exports, employment and infrastructure strengths that are contributing to the growth of these clusters and India’s status as a world leader in electronics manufacturing.
The electronics manufacturing industry in India has shown tremendous growth in recent years with various government schemes like Production Linked Incentive (PLI) schemes, Make in India and growing global demand for diversified supply chains. As investments are pouring into this industry, a few areas are becoming electronics manufacturing hubs as well as export and employment hubs; such as Sriperumbudur, Noida, Hosur and Tirupati.
India’s Electronics Manufacturing Boom
The manufacturing growth has been led by mobile phone manufacturing, which has risen by almost 28 times and exports have risen by 127 times. The domestic demand for mobile phones in India is now approximately 97% of the total demand, down from 25% in 2014-15, and imports have been reduced to negligible levels.
With the value addition in the electronics industry changing from around 30% to 70% and is expected to increase to 90% by FY27, it is expected to reduce dependence on imports and make the supply chain more robust.
Currently the second largest manufacturer of mobile devices in India with over US$49 billion worth of phones manufactured. Electronics exports in FY25 are at US$38.56 billion, marking a 20.4% increase from the previous year and the government is aiming for US$120 billion in electronics exports and US$300 billion in electronics manufacturing. This is one of the key reasons for the growth of specialty manufacturing clusters such as Sriperumbudur, Noida, Hosur and Tirupati and attracting global electronics companies to provide job opportunities.
1. Sriperumbudur (Electronics export hub)
From the companies that include Foxconn, Samsung, Pegatron, Dell, Flex, Salcomp, Motorola, Siemens and Ericsson, Sriperumbudur has become one of the major electronics manufacturing hubs in India. The Chennai-Sriperumbudur electronics belt contributes substantially to India’s electronics exports, and is a major manufacturing centre for Apple and Samsung products.
iPhones are made by Foxconn and Pegatron in Tamil Nadu, and around 30,000 are working for Foxconn. The company has also announced its investments of nearly ₹13,000-15,000 crore in and around the electronics ecosystem in Chennai with the creation of 14,000 more jobs.
The success of the cluster is mainly because of the proximity to Chennai Port, Chennai International Airport and the growing supplier base. Sriperumbudur is fast emerging as a prime destination for electronics manufacturing, exports and job creation as a result of the diversification of supply chains away from China by global companies.
2. Noida (Mobile Manufacturing cluster)
Noida-Greater Noida has become the largest smartphone manufacturing area in India with more than 60% of the produced mobile phones in the country. Key manufacturers Samsung, Dixon Technologies, Vivo, Oppo, Lava, Optiemus, Xiaomi and Google Pixel suppliers are a part of the cluster.
Samsung had sunk an investment of approximately ₹4,900crore to increase their production capacity from 68 million to 120 million phones annually and the plant served as a major exporter. The company shipped electronics valued at ₹45,930 crore in FY25 as compared with a growth of 25% in the previous year.
The growth of Noida is a reflection of the electronics revolution that India is witnessing. Mobile phone imports, which accounted for 75% of the domestic demand in 2014-15, have fallen by 28 times to ₹0.02 lakh crore in 2024-25, while mobile phone production has risen by 28x from ₹18,000 crore to ₹5.5 lakh crore. Mobile exports increased 127x from ₹1,500 crore to nearly ₹2 lakh crore during the same period making India a net exporter of mobiles.
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3. Hosur: Tamil Nadu’s emerging electronics & wearables hub
The town is home to companies like Tata Electronics, Titan, Ather Energy, TVS Electronics, Ashok Leyland and some electronics parts manufacturing companies.
Tata Electronics has invested over ₹12,000 crore in the electronics ecosystem in Tamil Nadu, which is the largest investment. In FY 25, Tamil Nadu’s electronics exports touched approx. ₹1.25 lakh crore, making it the leading electronics exporting state in the country. Hosur is gaining significance, as companies are looking to diversify from the Chennai-Sriperumbudur route.
The cluster’s strategic location, 40 km from Bengaluru’s Electronic City, allows the cluster to tap into a large pool of talent and the excellent road and Kempegowda International Airport connectivity boosts its export potential.
4. Tirupati: electronics manufacturing hub in Andhra Pradesh
Due to the electronics manufacturing cluster (EMC) initiative of the state government and its proximity to the important port cities, Tirupati has emerged as the first electronics manufacturing hub of Andhra Pradesh. The area is home to electronics component manufacturers, Ismartu, Celkon, Foxlink and Dixon Technologies.
The Tirupati EMC cost around ₹390 crore and covers an area of 330 acres, which will provide a dedicated ecosystem for electronics manufacturing. The cluster has been able to attract investments worth more than ₹2500 crore and create over 25000 direct and indirect jobs.
A big support arrived from the cable provider to Foxlink, Apple, who invested around ₹1,350 crore and set up the manufacturing plant close to Tirupati. It is expected to provide employment of approximately 14,000 to the company alone, making it one of the biggest electronics investments in Andhra Pradesh.
The government of Andhra Pradesh has considered electronics as one of the growth sectors and has targeted the industry with investments of more than ₹10,000 crore in electronics manufacturing. The strategic location of Tirupati, roughly 135 km from Chennai port, and its connectivity to Krishnapatnam port, puts the manufacturers in an advantage to reach export markets, with lower operational cost as compared to Chennai and Bengaluru.
Future Outlook
- India’s goal is to achieve US$300 billion in electronics manufacturing by 2030.
- By 2030, the electronics industry’s exports are expected to be valued at US$120 billion.
- Projects worth ₹1.5 lakh crore+ have been approved as semiconductors.
- There will be more investments in PLI and EMC schemes going.
Written by Boyapati Sai Jasmitha
