electronics manufacturing india vs china growth current status

electrical/electronics manufacturing in India vs China: where each stands, how India is progressing, what gaps remain, and how the two compare. If you want, I can also make this very numerical (with charts) state-wise or product-category-wise.

Table of Contents

Keytake away:

*china is heading towards tobotic manufcaturing , 54%+ inudstries without human inetervtion*. National strategy: Beijing’s “Made in China 2025” and the “14th Five-Year Plan for Robot Industry Development” are national strategies to shift the country from a low-cost, labor-intensive manufacturer to a high-tech manufacturing powerhouse.

🇨🇳 China: Strengths & Current Position

To understand the gap, first some of China’s advantages and current state:

Scale & Ecosystem Maturity
- China has had decades to build its electronics manufacturing capacity: component suppliers, testing/packaging, R&D, logistics, talent, export setups.
- Very strong domestic value-chain: many sub-components (ICs, displays, batteries, PCBs etc.) are designed/manufactured locally.
Upstream Components & High-Tech / Critical Components
- China dominates in semiconductors, displays, camera modules, advanced battery tech etc.
- Massive investments in robotics, automation, advanced manufacturing.
Exports / Global Supply Chains
- China is a major global exporter of finished electronics, high-volume consumer electronics, and is deeply integrated into global supply chains (OEMs, ODMs).
- Similarly, China is a source for many of the components imported by other electronics-manufacturing countries (including India).
Infrastructure, Logistics, Skill Base
- Strong infrastructure: ports, power, manufacturing clusters, special zones, well-developed supplier networks.
- Skilled workforce in both manufacturing and engineering/R&D.

🇮🇳 India: Progress, Strengths & Weaknesses

India has been making rapid strides, especially over the last few years, thanks to policy reforms and incentives. Key points:

Production Linked Incentive (PLI) & Other Incentives
- Since 2020, India has launched PLI schemes in electronics & related sectors, which have attracted large investment and boosted output & job creation.
- New scheme: Electronics Component Manufacturing Scheme (ECMS), proposals worth ₹1.1-1.15 lakh crore already showing up.
Exports & Value Addition Gains
- Mobile phone exports have exploded: from very small base (~US$0.2 B) in 2017-18 to ≈ US$24.1 B in 2024-25.
- Domestic value addition (DVA) is increasing. In mobile manufacturing, DVA has gone up; both direct and indirect supply chains are growing.
Dependence on Imports (Especially Components)
- India still imports many critical components: ICs, PCBs, displays, camera modules, semiconductors etc. China (and Hong Kong) remain large suppliers of those.
- Domestic value addition is low in many products because several upstream components are still imported.
Cost Advantages and Disadvantages
- Advantages: Lower wages for labour; recently improving infrastructure; policy support (PLI, tax incentives) making costs more competitive.
- Disadvantages: Lower scale (less output compared to China), weaker supply chains upstream, higher costs in certain inputs (electricity, land, logistics), regulatory and bureaucratic friction.
Ambitions & Policy Targets
- India aims to scale electronics manufacturing to USD 300 billion output by FY 2026, including big push for exports.
- Vision to strengthen local component manufacturing, reduce import dependence, boost domestic value addition.

🔍 Direct Comparisons: What India Has Closed the Gap On, What Remains

Aspect	Where India Has Made Big Gains	Where China Still Has Clear Lead / India Needs Catching Up
Smartphone Assembly / Exports	India has become a major hub. Massive growth in phone exports. India surpassed many expectations; mobile phone exports are a big success story.	China still leads in volume, component ecosystem, R&D of high-end phones & accessories. High-end components like advanced displays, camera modules etc. still largely dominated by China or firms largely based there.
Domestic Value Addition (DVA)	Improving; more component-supply chains forming; some upstream component manufacturing projects are being proposed.	High value addition already in many segments, particularly high tech, in China. Big part of components ecosystem is well established.
Investment & Policy Support	India has mobilized large investments under PLI, ECMS etc.; policy push is strong; trade / import regulation also being used to reduce Chinese component dominance.	China has long had strong government policy support; its advantage in economies of scale, existing infrastructure, technological depth is large.
Component Manufacturing Capability	Just starting to build up: proposals under component manufacturing schemes, pushing for PCBs etc.	China remains dominant in many upstream components: advanced ICs, many passive & active components, display panels, battery cells etc. India lags.
Cost of Labour & Basic Inputs	Labour is cheaper in India; India is trying to improve cost structure.	China still has efficiency advantages due to scale, established systems, automation, better supplier proximity, more developed R&D etc.

🚀 Recent Signals India Is Gaining Ground

India recently overtook China as the top supplier of smartphones to the United States for a quarter (June 2025), largely driven by Apple shifting more iPhone assembly to India.
India is getting much larger proposals under component manufacturing schemes, exceeding targets — showing investor confidence.
There are also increasing partnerships with non-Chinese firms (Taiwan, South Korea, Japan) for technologies and components, rather than relying heavily on Chinese suppliers.

⚠️ Remaining Gaps & Challenges

India still has challenges before it can match China in many respects:

Upstream Components / Critical Technologies
Many of the high-tech or critical components are still largely imported. Building this capability takes time, capital, technical skill, and R&D.
Scale & Volume
China’s production volumes are much larger, which gives economies of scale, ability to amortize costs, better bargaining power in global supply chain. India is scaling, but not yet at Chinese levels in many areas.
Supply Chain & Ecosystem Clustering
China has many interconnected suppliers, sub-suppliers, strong export infrastructure, many supporting industries etc. India is still building many of these, especially in specialized component parts.
Infrastructure & Regulatory / Policy Bottlenecks
Issues like land acquisition, logistics (ports, freight), electricity reliability, regulatory clearances, skilled labour, etc. often slow down project implementation.
Technology, R&D & Innovation
India is improving, but R&D, especially in semiconductors, display tech, advanced component design etc., is still weaker compared to China.

✅ Bottom-Line: Where India Stands vs China

India is catching up in electronics assembly, export of finished goods (especially smartphones). The growth here has been dramatic.
However, in component manufacturing, upstream technologies, value chain depth, China still has a strong lead.
India’s policy moves (PLI, ECMS) and growing domestic & foreign investment show a serious attempt to reduce dependence on China and build its own capability. These are promising signals.
In markets like mobiles, India may become (or is becoming) a viable alternative to China for certain segments. But for high-end, cutting edge components, the gap remains significant.

electronics manufacturing comeponents how much percentage imported from china to india vs local made

recent statistics & estimates for how much of India’s electronics components are imported (especially from China) vs how much are locally made / produced, plus some of the gaps. Data vary by source and component type.

🔍 Key Figures – Import vs Local-Production

Metric	What data says
Share of electronics component imports from China & Hong Kong	In FY 2023-24, ~ $34.4 billion of electronics components were imported by India, of which ~$12 billion was from China and ~$6 billion from Hong Kong. Together, China + Hong Kong accounted for more than half of component imports.
Share of total component imports from China earlier years	In FY 2019-20, ~62% of India’s component imports were from China + HK. That persisted as ~62% in 2020-21. FY 2021-22 saw ~68%, though in FY 2022-23 that dropped to ~49.7% for China/HK share.
Domestic production / local supply vs import dependence	More than 70% of India’s demand for electronic components is still met through imports.
Local value addition	Local value addition in electronics/components is low — figures quoted around 15-20% in many reports.
Production vs requirement of components like display, camera module, enclosures etc.	Some sub‐components: current Indian capacities fulfil about 15-25% of domestic demand for camera/display modules; enclosures supply is ~20%.

⚙️ Example Breakdown

If India needs electronics components worth, say, $100 to build a finished product (mobile, TV, etc.), then ~ $70-80 would be imported components (including many from China), and only $20-30 worth is from local Indian producers.
For certain high tech / critical components (ICs, advanced sensors, display panels, etc.), import share is far higher (often 80-90%), because India’s domestic manufacturing capability is small in these areas.
For simpler or more labour/material intensive parts (enclosures, basic passive components, mechanics etc.), India has better local supply but still often depends on imports for some upstream inputs.

✅ Summary

India is heavily dependent on imports for its electronic component needs; a large chunk (~60-70% or more) comes from abroad, with China + Hong Kong being a major source (often around half or more of component imports).
Local production is increasing, but value-addition is limited. Around 15-20% local content/value additive is typical, even as local firms try to grow.
Policy initiatives (PLI, component manufacturing schemes) target increasing this local content/value addition (government aims for ~35-40%) in coming years.

electronics manufacturing make in india opportunities

“Make in India” presents a lot of opportunities in electronics & electronic component manufacturing. Below are key opportunity areas, supported by current policy moves, market trends, and constraints. If you like, I can also map opportunities by region / state or by product-type.

🔧 What the Indian Government Is Doing — Enablers

PLI Schemes
- PLI for Large Scale Electronics Manufacturing: incentives for mobile phones, specified electronic components & ATMP units. Electronics Component Manufacturing Scheme (ECMS): approved ~₹22,919 crore (~US$2.7 bn) to promote domestic manufacturing of electronic components such as display modules, camera modules, PCBs, lithium-ion cells etc.
Support for Infrastructure & Ecosystem
- EMC 2.0 (Electronics Manufacturing Clusters) to provide common facilities, ready factory sheds, plug-and-play spaces.
- State policies (Telangana, UP, MP etc.) offering land rebates, capital cost subsidies, tax / electricity duty exemptions, etc.
Incentives, Capital Subsidies & Import Duty Adjustments
- For components (camera/display modules, PCBs etc.), capital expenditure support, turnover incentives under ECMS.
- Efforts to reduce import dependency in strategic components.
Focus on Value Addition & Reducing Import Dependence
- The goal is to raise domestic value addition (DVA) and have more of the supply chain locally.
- Encouraging R&D, design capabilities, upstream component manufacturing.

📈 Opportunities in Electronics / Component Manufacturing

Given the enabling environment, here are specific opportunity areas:

Opportunity Area	What Makes It Attractive	What Needs Doing / Risk Factors
Printed Circuit Boards (PCBs) & PCB Assembly	Huge demand from mobile phones, laptops, consumer electronics; currently most PCBs are imported. Under ECMS there are incentives.	Need technical skills, quality control, supply of raw materials (copper, laminates etc.); competition with established players overseas; infrastructure (power, clean rooms etc.)
Display Modules & Camera Modules	Rising demand (mobiles, smart TVs, IoT devices, security cameras); government scheme supports these.	High capex, technology licensing, yield challenges; need to establish supply chain for optical glass, sensors etc.
Lithium-Ion Cells / Battery Components	With growth of EVs, consumer electronics, energy storage there is big demand. Localising battery component production is crucial.	Raw materials supply (lithium, cobalt etc.), environmental regulations, safety standards, cost of capital; need proper recycling infrastructure
Enclosures / Mechanics / Electromechanical Parts	These are often lower tech but needed in large volumes; good margin for localization; less dependence on complex licensing.	Material sourcing (metal/plastics), precision tooling, moulds; competition from imports; achieving economies of scale
Passive Components (capacitors, resistors, inductors etc.)	Critical for almost every electronics product; huge import dependence; ECMS covers passive components.	Smaller profit per unit; quality consistency; need large volumes; sourcing raw materials; often need automation to reduce cost
Automotive Electronics / EV Electronics	India is pushing EV adoption; electronic content in vehicles is increasing; opportunity in sensors, power electronics, control units.	Certification, safety standards, reliability; need suppliers who can supply in automotive grade; long development cycles; supply chain for semis etc.
IT Hardware / Servers / Laptops / Tablets	Rising domestic demand + export potential; they’re part of PLI / ECMS schemes.	Competition with global brands; requirement for high-precision manufacturing; design / firmware etc.; supply of chips and high-end components often still imported
Semiconductors / Fabless / Packaging / Testing	Critical bottleneck now globally; India has policy pushes to build capacity; semis are strategic.	Extremely high capital cost; long gestation; need skilled manpower; technology licensing; supply chain for materials; global competition; managing yield and R&D costs

⚠ Key Challenges / Things to Keep in Mind

Skill Gap: There is a projected shortage of millions of skilled/manual workers and engineers in electronics sector by FY 2027-28.
Raw Material / Input Dependency: Many upstream inputs (semiconductors, certain sensors, exotic display elements etc.) are still heavily imported. Reducing dependency will take time.
Capital / Cost Structure: Capital costs, power costs, logistics, financing cost are still higher than some competing countries. Also regulatory delays in clearances, though improving.
Scale & Yield: To be globally competitive need high volumes and good manufacturing yields. Early mistakes / defects can be costly.
Infrastructure: Need stable power, good transport, industrial clusters with supportive policies; supply of clean water, waste disposal etc.

🎯 What Makes India a Good Bet / Strategic Advantages

Large domestic market; growing demand for electronics for consumer, automotive, IoT, etc.
Government is strongly backing electronics manufacturing with multiple complementary schemes (PLI, ECMS, Semicon Mission etc.).
Demographics: young workforce, potential to train; rising number of engineering graduates.
Global supply chain shifts: many companies wanting to reduce dependence on China (“China+1” strategy); India can capture part of that shift.
Increasingly better industrial policy environment; states competing to offer incentives; improving ease of doing business.

electrical items imported from china vs local made how much percentage imported

some recent statistics & estimates on how much of India’s electronics / electrical imports come from China (incl. Hong Kong), vs how much is locally made. Exact numbers for “local made share” are harder to find, but we can infer gaps from import dependency data.

🔢 Key Data on Imports from China

Metric	Number / Percentage
Share of electronics, telecom, electrical imports from China+HK	~56% of India’s imports in electronics, telecom, electrical sectors in 2023-24 came from China + Hong Kong.
Breakdown of China’s share alone	China accounts for ~43.9% of those imports (electronics, telecom, electrical) in 2023-24.
In earlier years (electronic component category)	In FY 2019-20, ~62% of electronic components imported to India were from China + Hong Kong.
More recent component imports	In 2023-24, India imported electronic components worth US$34.4 billion; of these, ~US$12 billion from China and ~US$6 billion from Hong Kong — together making up a majority of such imports.

⚙️ Implications for Local Manufacturing (“Local Made”)

If ~56% of electronics & electrical imports are from China + HK among imported items, that suggests a large dependency.
But “local made” includes both domestically manufactured finished goods + locally sourced components. Data on how much of the demand is met by local manufacture is less precise, but imports being more than half in many categories shows local share is still under ~40-50% (in many subcategories less).

🔍 Estimate of Local vs Imported Share

Based on the numbers:

For electronic / electrical goods imported → about 56% come from China+HK. That leaves ~44% of imports from other countries.
Local production competes with imports, but often local content or local production is even less, because “imports” figure doesn’t include local made + foreign imports inside finished goods. Many products are assembled locally but use imported components.
Therefore, the local made portion (for finished items + components) is likely much lower than 50% in many categories (especially those depending on high tech components).

📊 Product-Category Estimates: Local vs Imported Share

Product / Category	Local Content / Local Value Addition Estimate	Key Details / Caveats
Smartphones	~ 15-25% local value addition in recent years; some brands higher (25-30%) vs lower (6-8%) depending on how much is imported.	E.g., Counterpoint data says local value addition rose from ~6% in 2016 to ~16% in 2023 for average “Made in India” phones. Samsung reportedly has ~25-30% local value add; Apple’s ~6-8% for its models sold in India. “99.2% of phones sold are now ‘made locally’” but that doesn’t mean all components are local. Assembly is local but many key components (chips, display, sensors) are still largely imported.
Wire & Cable / Electrical Cables	Much higher local content; India has strong domestic wire & cable industry, is even exporting more than importing in many segments.	While raw materials (copper, aluminium, insulation material) may be partly imported, the manufacturing (assembly, insulation, cable pulling etc.) is largely local. Organized sector has strong presence.
Electrical Motors / Insulators etc. (Power / Distribution Equipment)	Govt procurement rules require high local content (often 70-80+%) for certain classes; many electrical motors etc. in public power sector need to meet e.g. 80% local content under PPP/Make in India provisions.	These requirements are for public procurement and for products like motors (0.37 kW to 1 MW), conductors, insulators etc. So for items sold in these segments, local content is very high; but in commercial imports/private sector slightly less.

⚠️ Key Observations & Gaps

Even for “Made in India” assembly, many important components (semiconductors, displays, sensors, camera modules, optics, etc.) are still largely imported. That drags local value addition down.
Products with simpler mechanical / plastic / enclosure parts tend to have higher local content.
Policy/incentives (like PLI, procurement rules) are pushing value addition up, but this takes time due to scale, supply chain, technology, and investment constraints.

list of electircal & electronics & its components imported to india by percentage

Here are some numbers / estimates for how much India imports different categories of electrical & electronics components / items, and what share those imports represent. The data are from various recent reports & government sources, so there are differences in time periods, definitions, etc. But this gives a picture of how dependent India is / was on imports in various E & E product segments.

📊 Key Pieces of Data: Imports by Category

Component / Category	Import Value / Share / Notes
Electronic goods: finished vs components	In FY 2019-20, of total electronics imports, ~69% were finished goods; components were ~30%. By FY 2021-22, share of finished goods remained high but dropped somewhat (~64%), whereas import of electronic components rose to 35% of electronics imports.
Import dependency of components	India still imports ~70% of its electronic components (semiconductors, ICs, display panels etc.).
Component import from China / HK	In FY 2023-24, electronic component imports to India were US$ 34.4 billion, of which ~ US$ 12 billion from China + ~ US$ 6 billion from Hong Kong. That is more than half of component imports.
Share of certain key component types imported	• HS Code 8542 (integrated circuits, microassemblies, processors etc.): China + HK share ~ 52.4% of imports in FY24. • HS 8541 (semiconductor devices, LEDs, PV cells etc.): China + HK ~ 61% in FY24. • Printed Circuit Boards (PCBs) (HS 8534): China + HK ~ 72.9% of India’s PCB imports in FY24.
Local production vs imports	Local production of electronics components is small: estimates say only ~ 10-20% of critical components are made locally for many categories. For example, display modules / camera modules: only ~ 15-25% of demand is currently met by Indian capacity. Enclosures: ~ 20% of domestic demand is met locally.

some popular products designed in Germany, manufactured in China, and sold in India:

1. Blaupunkt Bluetooth Speakers

Brand Origin: Germany
Manufacturing: China
Availability in India: Widely available on e-commerce platforms like Amazon India and Blaupunkt’s official website.
Popular Models: BT03 RGB, ATOMIK Grab 20W Boombox
Note: While Blaupunkt is a German brand, its audio products are now manufactured in China and sold globally, including in India.

2. Herrenknecht Tunnel Boring Machines (TBMs)

Brand Origin: Germany
Manufacturing: China (Guangzhou facility)
Use in India: Used in major infrastructure projects like the Mumbai-Ahmedabad bullet train corridor.
Recent Developments: In 2025, TBMs manufactured in China faced export delays, leading Herrenknecht to consider establishing production facilities in India to mitigate future supply chain risks.

3. Bosch Power Tools

Brand Origin: Germany
Manufacturing: China (for certain models)
Availability in India: Available through various online and offline retailers.
Note: Bosch manufactures a range of power tools in China, which are then sold in India and other markets.

4. Siemens Home Appliances

Brand Origin: Germany
Manufacturing: China
Availability in India: Available through select retailers and online platforms.
Note: Siemens produces various home appliances in China for the global market, including India.

5. Philips Lighting Products

Brand Origin: Netherlands (formerly Dutch, now part of a Dutch–Belgian conglomerate)
Manufacturing: China
Availability in India: Widely available in Indian markets.
Note: Philips manufactures a significant portion of its lighting products in China, which are then exported worldwide, including to India.

6. Miele Washing Machines

Brand Origin: Germany
Manufacturing: China (for certain models)
Availability in India: Available through exclusive outlets and online platforms.
Note: Miele produces some of its washing machines in China, which are then sold in India.

7. BASF Chemicals

Brand Origin: Germany
Manufacturing: China
Use in India: BASF supplies various chemicals to Indian industries, including agriculture, automotive, and construction.
Note: BASF manufactures a range of chemicals in China for export to India and other countries.

8. Festo Automation Equipment

Brand Origin: Germany
Manufacturing: China
Use in India: Used in industrial automation and control systems across various sectors in India.
Note: Festo manufactures a portion of its automation equipment in China for the Indian market.

9. Leica Surveying Instruments

Brand Origin: Switzerland (formerly Swiss, now part of a German company)
Manufacturing: China
Use in India: Widely used in construction and surveying projects across India.
Note: Leica manufactures a significant portion of its surveying instruments in China, which are then sold in India.

10. Hella Automotive Lighting

Brand Origin: Germany
Manufacturing: China
Use in India: Supplies lighting solutions to Indian automotive manufacturers.
Note: Hella manufactures a range of automotive lighting products in China for the Indian market.

raju ginni

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