India’s manufacturing sector is entering a phase where investment must translate into deeper industrial capabilities and value addition.
From semiconductor supply chains to electronics production, automotive investments and specialized EV development, new opportunities are emerging across industries.
These developments highlight the need for stronger component manufacturing, advanced technology, skilled talent and resilient supply chains to support India’s manufacturing ambitions.
Five developments across semiconductors, electronics, and mobility point to the same shift: Indian manufacturing is moving from assembly and announcements toward component production, technology ownership, and a deeper manufacturing ecosystem.
At Semicon India 2026, Union Electronics and IT Minister Ashwini Vaishnaw said the government had secured investment commitments of USD 11–12 billion under Semicon 2.0, the second phase of India's semiconductor program.
The commitments span semiconductor equipment, materials, gases, chemicals and substrates, with investments expected to materialize over the next two to three years.
Semicon 2.0 has already been approved with an outlay of Rs 1.27 lakh crore, covering six areas including chip design, semiconductor equipment and materials, fabs, advanced packaging, R&D and talent development.
This spread across the value chain is exactly where Indian MSMEs and domestic suppliers could find an entry point.
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Bengaluru hosted electronica India and productronica India this month, South Asia's premier trade fair for electronics, now running twice yearly, drawing 50,000+ regional buyers from OEMs, EMS providers, and startups amid India's booming electronics manufacturing push.
A closer look at the technologies on display comes from Texas Instruments, which is showcasing over 20 semiconductor technology demonstrations at the fair. These include applications for software-defined vehicles, battery management, solar inverters, electricity metering and grid infrastructure.
The manufacturing significance lies in the connection between these technologies and the products India is seeking to manufacture domestically. For example, TI’s demonstrations cover zone control and real-time wheel-speed tracking for automotive applications, alongside power-management technologies for energy systems.
Beyond it, the real story is production technology: automation, testing systems, and PCB manufacturing equipment determine whether India moves from assembling imported components to building its own electronics supply chain.
The gap for Indian manufacturers is therefore not simply access to semiconductor products, but the ability to integrate advanced electronics into locally designed and manufactured systems.
Nexperia, the Dutch power and analog chipmaker, has struck a strategic partnership with Tata Electronics covering wafer manufacturing, assembly, testing, and technology development.
The agreement covers Nexperia’s MOSFET portfolio at Tata Electronics’ upcoming 300mm semiconductor fab in Dholera, Gujarat, alongside assembly and testing of Nexperia’s discrete semiconductor products at Tata’s packaging facility in Jagiroad, Assam.
The partnership connects Nexperia’s power semiconductor technology with Tata Electronics manufacturing infrastructure, spanning chip fabrication, assembly and testing in India.
The Union Minister for Heavy Industries and Steel H D Kumaraswamy shared Auto PLI scheme has now drawn cumulative investment of over Rs 44,326 crore, with 82 approved applicants and close to 68,000 jobs generated, under the Rs 25,938-crore scheme.
Crucially, incentives are available only for products achieving a minimum of 50 percent domestic value addition. That threshold is the real test: it pushes companies beyond vehicle assembly into battery manufacturing, power electronics, and component localization.
The requirement is strengthening India’s supply chain for advanced automotive technologies. As EV production scales up, demand for locally made batteries, electric powertrains, semiconductor controls and specialized components is expected to rise, with the Indian auto components suppliers and MSMEs standing to gain most.
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Omega Seiki Mobility, already active in cargo three-wheelers and electric two-wheelers, is extending into more specialized product engineering, including mobility solutions designed around accessibility needs.
Purpose-built accessible vehicles differ from retrofitted ones - they demand ground-up ergonomic and structural design. This kind of inclusive design signals that India's EV sector is beginning to serve niche user categories.
These requirements can create opportunities for manufacturers working on customized chassis structures, seating systems, control mechanisms and other specialized automotive components.
For Indian EV manufacturers and auto components suppliers, such products could open a pathway into lower-volume, higher-specialization manufacturing.
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