In a landmark development for India’s electronics manufacturing landscape, industry giants Dixon
Technologies and Tata Electronics are poised to make substantial investments under the
government’s recently expanded Production-Linked Incentive (PLI) scheme. These strategic
commitments aim to strengthen India’s position in the global electronics supply chain and reduce
dependence on imports.
Dixon Technologies’ Strategic Expansion
Dixon Technologies, India’s premier electronic manufacturing services (EMS) provider, is
strategically expanding its manufacturing capabilities to capitalize on the ₹23,000 crore
opportunity presented by the government’s PLI scheme. The company, which already commands
a significant market share in mobile manufacturing through partnerships with global brands like
Samsung and Motorola, is now venturing deeper into high-value electronic components
production.
“Dixon’s multi-vertical approach has consistently delivered exceptional results, and their
expansion into components manufacturing represents a natural progression in their growth
strategy,” notes Anand Kumar, Senior Analyst at ICRA. “Their established track record in mobile
manufacturing provides them the technical expertise and scale economics to succeed in this new
vertical.”
The company’s latest quarterly earnings report indicated a robust 32% year-over-year revenue
growth, demonstrating strong operational performance that supports its ambitious expansion
plans. Industry experts believe Dixon’s move will significantly enhance its profit margins while
reducing supply chain vulnerabilities.
Tata Electronics’ ₹2,000 Crore Commitment
Meanwhile, Tata Electronics is preparing to invest approximately ₹2,000 crore in manufacturing
critical electronic components, according to reliable industry sources. This substantial investment
underscores the Tata Group’s commitment to establishing itself as a key player in India’s
electronics manufacturing ecosystem.
The conglomerate has already made significant strides in semiconductor packaging and iPhone
assembly components manufacturing. This fresh investment signals Tata’s intention to create a
comprehensive electronics manufacturing portfolio aligned with its broader strategy of building
leadership positions in future-focused industries.
“Tata Electronics’ planned investment comes at a crucial juncture when global electronics supply
chains are undergoing reconfiguration,” explains Ravi Sharma, Director at the Electronic
Industries Association of India. “The group’s financial strength and technical capabilities position
it perfectly to capture market share in high-value component manufacturing.”
Government’s PLI Catalyst
Both investments are being catalysed by the Indian government’s expanded PLI scheme for IT
hardware and components, which was approved earlier this year. The scheme, designed to
incentivize domestic manufacturing of electronic components, aims to transform India into a
global hub for electronics production.
The Ministry of Electronics and Information Technology (MeitY) has allocated substantial
resources to reduce import dependence across critical components like semiconductors,
batteries, and display panels. Government sources indicate that this initiative could generate
exports worth ₹2.45 lakh crore and create over 75,000 direct jobs in the next five years.
“The revised PLI scheme addresses key pain points in India’s electronics manufacturing
ecosystem,” said Rajeev Chandrasekhar, Minister of State for Electronics and IT, in a recent press
briefing. “By incentivizing high-value component manufacturing, we’re building a self-reliant
ecosystem that will attract global investments and position India as a trusted partner in global
supply chains.”
Market Implications and Future Outlook
The twin investments by Dixon and Tata Electronics could fundamentally alter India’s electronics
manufacturing landscape. Historically, the country has predominantly focused on assembly
operations while importing most high-value components from China, Taiwan, and South Korea.
This shift toward components manufacturing addresses a critical gap in India’s electronics
ecosystem and could yield several benefits:
- Enhanced value addition: Local components manufacturing could increase the domestic
value addition in electronics production from the current 15-20% to potentially 35-40%. - Supply chain resilience: Reduced dependence on imports will strengthen supply chain
security and mitigate geopolitical risks. - Technology transfer: Manufacturing advanced components necessitates sophisticated
technology, potentially accelerating knowledge transfer to the Indian ecosystem. - Export potential: High-quality locally manufactured components could eventually serve
global markets, boosting India’s electronics exports.
Investment bank Morgan Stanley, in its recent report on India’s manufacturing sector, projected
that electronics components manufacturing could grow at a CAGR of 30% over the next five
years, potentially creating a $40 billion industry by 2030.
“We’re witnessing the beginning of India’s transition from being primarily an assembly hub to
becoming an integrated manufacturing powerhouse,” concludes Vikram Mishra, Technology
Practice Head at Deloitte India. “The investments by established players like Dixon and Tata
Electronics validate the government’s policy direction and could trigger a virtuous cycle of
additional investments in this space.”
References:
- Business Standard. (2025, April). “Tata Electronics likely to invest ₹2,000 crore for
electronics components manufacturing.” Retrieved from Business Standard Technology
Section. - Ministry of Electronics and Information Technology. (2024-2025). “Production Linked
Incentive Scheme for IT Hardware and Components.” Government of India Official
Documents. - Dixon Technologies. (2025, Q1). “Quarterly Financial Report.” Corporate Investor
Relations. - Morgan Stanley Research. (2025, March). “India Manufacturing Outlook: Electronics
Component Manufacturing.” Industry Analysis Report. - Electronic Industries Association of India. (2025, April). “India Electronics Manufacturing
Report.” Industry Publication.
