India Steadily Developing Electronics Capabilities: Vaishnaw

• India’s  Strategic  Push Toward Electronics  Self-Reliance and Value Addition
• Foxconn’s  Talent Recall Reveals  Geopolitical Challenges
• India’s Supply Chain Diversification and Road to 38% Value Addition

India is steadily developing its own capabilities in electronics manufacturing through a methodical and sustained approach, and is on track to achieve a value-addition target of 38% within the next five years, according to Ashwini Vaishnaw, Union Minister for Electronics and IT, Railways, and Information & Broadcasting. Currently, China leads with 38% value addition in electronics.

Vaishnaw made these remarks in response to recent reports that Foxconn, a key supplier for Apple, has repatriated around 300 Chinese engineers from its Indian manufacturing facilities.

“De-risking is learning the skills and making it here and developing our own supply chain, which is what we are doing,” he said during an ET Roundtable in New Delhi on Thursday. The minister emphasized that India is receiving substantial international support to strengthen its electronics ecosystem.

Countries such as Taiwan, the United States, and South Korea, along with Indian engineering talent, are playing a vital role, helping to reduce India’s dependence on China’s technical expertise.

On another note, Vaishnaw also addressed the growing concern around online misinformation. He stated that many countries are moving toward holding social media platforms accountable for content. Responding to questions about whether India might tighten regulations, he said, India is trying to build a political consensus on the issue and will be open to changing its legal framework if required.

India has already made significant progress in mobile phone manufacturing and is now advancing into the semiconductor sector. This is being driven by two major government-led initiatives: the ₹76,000 crore India Semiconductor Mission and the ₹23,000 crore components incentive programme, both launched earlier this year.

The minister noted that India’s electronics manufacturing sector is currently valued at around $145 billion and is growing at a compound annual growth rate (CAGR) of 20%. He added, “We know that there will be challenges in every growth path, but we have the confidence that we will be able to sustain our growth.”

Highlighting regional efforts, Vaishnaw shared that the Tata Electronics chip assembly facility in Assam will cater to global telecom companies. Meanwhile, the Micron unit in Gujarat will produce memory chips, and power electronics will be handled by the CG plant, also located in Gujarat.

Also Read: Gujarat Unveils Policy to Boost Electronics Manufacturing

According to a Bloomberg report, Foxconn has recalled more than 300 Chinese engineers and technicians from its iPhone production facilities in India, reportedly following Chinese government directives aimed at limiting the outflow of technology and skilled personnel. This move is expected to cause operational disruptions, potentially reducing assembly line efficiency and delaying the training of Indian workers, just as Apple ramps up production in the country.

While the report states that Taiwanese staffs are stepping in to fill the talent gap, the situation highlights the supply chain diversification challenges Foxconn is facing amid geopolitical uncertainty. At present, China remains the top contributor with 38% value addition in electronics manufacturing.

India has already exceeded the 20% mark in just six to seven years. “We are on a clear path to crossing 30% in the coming two to three years, and reaching 38% within the next five years is a very reasonable target,” Vaishnaw said.

The minister further stressed the need for complete self-reliance in electronics and manufacturing to protect India from external shocks. “We have to get into every machine, every component,” he said. “We must go into every part of it and start manufacturing them.”