India is on the cusp of a transformative leap in IT hardware manufacturing, positioning itself as a global production powerhouse. With the market projected to expand from USD 19.77 billion in 2024 to USD 27.86 billion by 2029, growing at a CAGR of 7.10%, this surge reflects more than just economic growth—it marks a strategic shift in India’s industrial landscape.
Having already established dominance in software and IT services, India is now accelerating its push into hardware manufacturing. A dynamic domestic market, a deep talent pool, and forward-thinking policies are driving this evolution. Backed by strong government incentives, rapid infrastructure advancements, and increasing industry collaboration, India is dismantling past barriers and laying the foundation for sustained innovation. As these efforts gain momentum, India is set to reshape global supply chains, strengthen its economy, and emerge as a key player in next-generation technology manufacturing.
A Thriving Manufacturing Ecosystem
India’s IT hardware sector is undergoing a profound transformation, fueled by strategic government policies and industry-driven innovation. The Production Linked Incentive (PLI) scheme has been a game-changer, attracting global manufacturers and enabling them to establish robust production bases in the country. As a result, major players have significantly expanded local assembly operations, reinforcing confidence in India’s manufacturing ecosystem.
But this momentum extends far beyond assembly lines. Investments are accelerating in semiconductor fabrication, printed circuit board (PCB) manufacturing, and advanced assembly technologies—propelling India from a predominantly consumer-driven market to a global leader in IT hardware production. The development of Electronic Manufacturing Clusters (EMC 2.0) is further optimizing infrastructure and supply chains, fostering an environment where both multinational corporations and homegrown startups can flourish.
Global companies are making long-term commitments to India, strengthening its position in global supply chains. This synergy between government incentives and private sector investment is reducing import dependence while firmly establishing India as a key player in the future of IT hardware manufacturing.
Government’s Role in Shaping the Industry’s Future
The Indian government is driving a transformative shift in the IT hardware industry, laying the foundation for long-term growth and self-reliance. The India Semiconductor Mission (ISM), backed by a USD 10 billion incentive package, is drawing global semiconductor giants to establish fabrication units, strengthening India’s position in the global chip ecosystem.
Complementing this push are flagship initiatives like Make in India and Atmanirbhar Bharat, which are fueling domestic innovation through financial incentives, R&D support, and streamlined regulations. These policies are not only accelerating local manufacturing but also positioning India as a strategic alternative for global companies looking to diversify supply chains.
The Production Linked Incentive (PLI) scheme for IT hardware has been a catalyst for rapid expansion, driving local production of laptops, tablets, and servers. This shift has reduced import dependence, encouraged global brands to establish domestic manufacturing hubs, and unlocked new employment opportunities. As investment surges and production scales up, India is emerging as a global hub for IT hardware, reinforcing its role in the next era of technology manufacturing.Top of Form
Bottom of FormIndia’s Competitive Edge in the Global Market
As global supply chains evolve, businesses are actively diversifying their production hubs, and India is emerging as a top choice for IT hardware manufacturing. With its democratic governance, pro-business policies, and accelerating infrastructure development, the country offers a stable and attractive environment for investment.
A key strength lies in India’s young, highly skilled workforce. Engineers specializing in semiconductor design, AI, and IoT are driving innovation in chip development and embedded systems, strengthening the nation’s technological edge. Beyond talent, India’s vast domestic market presents a significant advantage. The rapid adoption of digital technologies—particularly in education, healthcare, and fintech—is fueling demand for locally manufactured IT hardware. As businesses and consumers seek high-quality, cost-effective computing solutions, India is well-positioned to meet both domestic and global needs, solidifying its role as a major player in the IT hardware industry.
Strengthening Infrastructure and Innovation
To sustain this momentum, India must continue to bolster its infrastructure, talent pool, and innovation ecosystem. Expanding high-tech industrial parks, semiconductor hubs, and dedicated electronics manufacturing clusters will be key to building a globally competitive IT hardware industry. Additionally, strategic investments in logistics optimization, smart warehousing, and Industry 4.0 technologies will not only enhance production efficiency but also solidify India’s position in the global IT hardware landscape.
Equally crucial is workforce development. Recognizing this need, institutions are rolling out specialized programs in VLSI (Very Large-Scale Integration) design, embedded systems, and semiconductor fabrication to equip the next generation of industry leaders. Strengthening collaboration between academia and industry will further accelerate R&D, ensuring India remains at the forefront of innovation in IT hardware manufacturing.
Conclusion
India’s IT hardware industry is experiencing unstoppable growth, furled by forward-thinking policies, rising investments, and a shifting global landscape. The country’s transformation from an import-dependent market to a self-sustaining manufacturing powerhouse is unlocking new opportunities for economic growth, job creation, and technological innovation.
With a clear strategy, a thriving manufacturing ecosystem, and a deep commitment to innovation, India is not just keeping pace with global advancements—it is setting new benchmarks. As the nation continues to enhance its infrastructure and capabilities, it is not merely preparing for the future but actively shaping it.
Disclaimer: Content Produced by ET Edge
