Synopsis: India’s Electronics System Design & Manufacturing (ESDM) sector is positioned for transformative growth, with market projections reaching ₹7 to 8 lakh crore by 2030, so it’s doubling from the current ₹3.1 lakh crore in FY25. This article highlights top ESDM states and manufacturing hubs.
This expansion, driven by a robust compound annual growth rate of 20-25% CAGR over the next five years. In the future, India will no longer be a service-driven sector. India is going all in to become a big player in semiconductors and manufacturing by 2047.
The Structural Shift Toward India from China
Apple and its primary vendor, Foxconn, now account for approximately 70% of India’s smartphone exports, with exports reaching a record ₹1,55,000 crore in April-January FY 25. Notably, India surpassed China as the leading smartphone exporter to the US in Q2 FY26, a landmark achievement that validates the “China+1” strategy being adopted by multinational OEMs.
Top ESDM States & Manufacturing Hubs
1. Tamil Nadu
Tamil Nadu has established itself as the leading state in electronics manufacturing in India, accounting for nearly 37% of the total exports of the country, which made $12.62 billion in FY2024-25. By 2027-28, the state plans to reach exports of $20–22 billion and has set up a ₹500 crore Semiconductor Mission to establish parks in Sulur and Palladam. Tamil Nadu, with its strong OEMs, deep supply chains, and R&D facilities, is attracting companies that want to diversify from China. Moreover, Foxconn and other big players globally have a workforce of more than 40,000, which further confirms that the state is the most comprehensive electronics hub in India.
2. Karnataka
Also referred to as the Silicon Valley of India, Karnataka is home to over 100 fabless chip design houses and more than 400 global R&D centres. It produces 50% of India’s electronic product companies and 40% of design output.
The state took the lead in semiconductor and ESDM policies, and its Centres of Excellence are in diverse domains like IoT, robotics, and medical electronics. The Karnataka Digital Economy Mission is the vehicle through which it envisions a $300 billion digital economy. Recent investments of ₹7,100 crore speak volumes about its strategic position in the worldwide ESDM arena.
3. Uttar Pradesh
Uttar Pradesh is the hub of ESDM in India, which is growing the fastest, taking the lead in mobile manufacturing with the production of 45% of smartphones and 55% of components coming from this state. Worldwide brands like Samsung, Oppo, and Vivo have significant facilities, and Samsung even has the largest mobile plant in Noida.
The state’s Semiconductor Policy 2024 offers incentives such as capital assistance, land cost reductions, and tariff concessions, thereby reinforcing its position as an area of consumer electronics and semiconductor development.
Also read: 6 Fast-Growing Greenfield Cities in India Emerging as New Investment Hubs in 2026
4. Maharashtra
Maharashtra, also referred to as the most industrially developed state of India, is responsible for 18% of the total national electronics output and contributes $3.5 billion through exports. Maharashtra has 1,416 manufacturing units and operates Hi-Tech ESDM parks in Ranjangaon and Talegaon, which together have attracted $5.1 billion in investments for the FY 2023-24.
Besides, the state produces 34-35% of the integrated circuits in the country, and also has a solid ecosystem for automation and data centres, with Mumbai alone housing 44% of India’s total data centre capacity. Its policies provide long-term incentives, thus making it easier for the state to become a global ESDM hub.
5. Gujarat
Gujarat is on the fast track to being a semiconductor hub, where Tata Electronics is creating India’s first chip manufacturing facility in Dholera, which costs ₹91,000 crore, active by 2026. Large-scale projects are being supported through the Gujarat State Electronics Mission and Electronics Policy.
Recent Investment in ECMS worth ₹5,532 crore Investment
- 7 projects approved under ECMS, out of which Tamil Nadu got 5 projects, investment of ₹4271 crore, Madhya Pradesh got ₹496 crore, and Andhra Pradesh got ₹765 crores.
- The generation of ₹44,406 crore and an increase of 5,195 jobs are the results of the projects.
- The investments approved by ECMS were ₹1.15 lakh crore, which is already double the target set.
- In the FY 2024-25, the electronics sector was ranked third among the largest Indian exports.
Conclusion
India’s ESDM industry is predicted to double and reach ₹7-8 lakh crore by 2030, mainly driven by smartphones, consumer electronics, and automotive electronics, with the support of a 20–25% CAGR forecast. The government policies like PLI, SPECS, ECMS, and the emphasis on a reliable, strong supply chain in the Bengaluru Tech Summit 2025 statement make India’s transition from a mere assembly hub to a global high-value design-and-manufacturing center for electronics possible.
Written by Yatheendra N
