Challenges Faced in Becoming an Electronic Components Manufacturing Hub - The Case of India

Abstract

In recent years, the global landscape of electronic component manufacturing has witnessed a dynamic transformation, with countries like Taiwan, China and Vietnam achieving remarkable growth. However, the contrasting trajectory in India prompts an exploration into the factors contributing to its comparatively slower advancement in this sector. This research aims to identify key barriers to scaling manufacturing, assess India’s comparative position across major competitiveness dimensions and examine strategies relevant to strengthening the sector. A mixed method secondary research design was adopted. Qualitative content analysis was conducted using government policy documents, industry and market reports, academic literature, and trade publications to identify recurring themes related to manufacturing constraints and ecosystem development. This analysis was complemented by descriptive quantitative comparisons using secondary indicators related to production scale, exports, innovation, investment, and workforce development across selected countries. The findings show that India’s manufacturing challenges are systemic, driven by regulatory, infrastructure, supply chain, financing, skill, and innovation gaps. Compared with established hubs India lags in scale, cost efficiency, quality, innovation, and global value chain integration. Policy initiatives have been introduced to support electronics manufacturing. The study concludes that sustained competitiveness will require coordinated, ecosystem level strategies focused on infrastructure, supplier depth, innovation systems, workforce development, and policy coherence rather than isolated interventions.
Keywords: Electronic components manufacturing; Manufacturing ecosystem constraints; Industrial policy effectiveness; Global value chain integration; Innovation and skills development