Configuring India as Global Excellence Hub for Electricals & Electronics

The Indian electrical industry in 2026 is witnessing quite an upward trend and has been experiencing rapid growth. This growth can be attributed to the drive for renewable energy, coupled with infrastructure expansion, and digital adoption. Today, the sector is growing at 12–15 percent annually. Furthermore, the market is characterized by a robust push toward decarbonization, wherein, the key manufacturing sectors like switchgear, cables, and transformers have been witnessing an upsurge in demand.

Similarly, the Indian electronics industry is projected to achieve USD 300 billion in production by 2026. This growth is said to be driven by robust PLI schemes, further coupled with the increased local manufacturing and a shift toward becoming a global export hub. Key sectors in India today include mobile phones, consumer electronics, and a burgeoning semiconductor ecosystem, targeting to make India a key global value chain player.

This growth in the electrical and electronics industry is a critical pillar for India's economic transformation. If we speak in terms of numbers, the production is projected to reach USD 300 billion by the end of this year. These ever-important niches are essential for shifting India from a consumption-based economy to a high-value manufacturing hub.Key reasons for its importance to India's growth.

Electronics has emerged as one of India’s fastest-growing export categories today with projections having been made that it would become the second-largest export sector by 2026. Furthermore, the government’s push for reduced import dependency has moved the country from assembling to producing.

This also services as an important environment for the much needed job creation push. According to a credible source, the sector has generated around 25 lakh (2.5 million) direct and indirect jobs over the last decade. And as the manufacturing moves from assembly to component-level production (PCB, semiconductor fab), it requires a large, skilled workforce, providing productive employment for India’s young population.

The growth is also being steered by strategic "China+1" nuance where global brands are shifting production beyond China, wherein, India is emerging as the most credible alternative due to political stability and infrastructure development. India has also attracted over USD 4 billion in Foreign Direct Investment (FDI) in electronics manufacturing since FY 2020- 21.4. However, to ensure steady growth, the manufacturers and services providers in this niche domain must gear-up themselves and stay at par with the changing market dynamics, policies and technology advancements.

Recognizing the importance of manufacturers and service providers in the field of electrical and electronics industry, Industry Outlook has come up with its yet another meticulously crafted monthly edition - "Electrical and Electronics Industry - 2026." This edition will shed light on some of the most vibrant players in India who have been setting standards for others to follow, be it in terms of manufacturing or services deliverability.