By: Jasraaj S Kalra, Managing Director, Noble Group
India’s electronics landscape is undergoing a remarkable transformation. Although smartphones are frequently the center of attention, the consumer electronics market is undergoing a more subtle but significant change. Hand tools, kitchen appliances, air coolers, washing machines, and other products are increasingly being created and produced in India. There is more to this shift than just domestic assembly. It is part of a larger localization strategy that is directing the nation’s development into a global center for manufacturing.
From Import Dependency to Domestic Production
In the past, the majority of India’s consumer electronics were imported. East Asia, especially China and South Korea, provided the finished goods and necessary parts. This model has evolved over the last ten years. These days, more and more of these appliances are made locally.
Manufacturers are now able to perform more complex stages of production in addition to basic assembly. These consist of mechanical design, control board integration, and component fabrication. For instance, convection ovens, fully automated washing machines and high-capacity air coolers are now manufactured in Indian factories using both imported and domestic components.
The shift is driven by growing demand, rising middle-class incomes and stronger government support. India is expected to become one of the world’s largest markets for appliances and small electronics, prompting manufacturers to invest in localised supply chains that reduce lead times and costs.
Government Push Toward Local Value Addition
Government-backed incentives have been a major force behind this trend. Air conditioners and LED lighting are among the white goods covered by the Production Linked Incentive (PLI) program. It provides funding to businesses that boost domestic value addition and expand local production of parts like PCB assemblies and compressors.
In India, this has led to new investments in component parks, factories, and training facilities. In order to create a more robust electronics supply base, the policy promotes both assembly and backward integration. The National Policy on Electronics (NPE) which goes beyond the PLI presents a plan to advance India as a center for the production of electronics worldwide. It focuses on the industrial clusters, design capabilities and component ecosystems that underpin the consumer appliance industry.
Rise of Integrated Manufacturing and Design
A major development in India’s consumer electronics sector is the move toward vertically integrated manufacturing. Companies are no longer only assembling parts sourced from abroad. They are building in-house capabilities in areas such as printed circuit board (PCB) assembly, injection molding and toolmaking.
For contemporary appliances, PCB assembly is especially crucial. Local access to embedded control systems becomes essential as electronics get smarter and more interconnected. In order to produce appliance control boards domestically, manufacturers are investing in automated assembly systems and surface-mount technology (SMT) lines. This facilitates faster turnaround for design modifications, enhances quality control, and lessens dependency on imported boards.
Additionally, the production of plastic parts and tools is being localized. These days, a lot of factories make their own enclosures, panels, and molds. This facilitates mass customization for the local market and expedites development. These skills are necessary for manufacturing long-lasting and effective appliances like kitchenware and washing machines.
Regional Growth and Cluster Development
The localisation of consumer electronics is visible across India. States like Tamil Nadu, Uttar Pradesh, Andhra Pradesh, and Gujarat have developed dedicated clusters for electronics and appliance manufacturing. These regions offer logistics advantages, lower operating costs and access to skilled labor.
Manufacturers are setting up large-scale assembly plants in these areas and building supplier networks nearby. The goal is to create complete ecosystems where metal components, motors, wiring harnesses and finished units can all be produced within a few hundred kilometers.
This cluster-based approach also supports exports. Some manufacturers have begun shipping Made in India appliances to the Middle East, Africa and Southeast Asia.Export potential is expected to grow further as local quality standards and production volumes improve.
Localization Pays Off: Jobs, Factories, and a Pan-India Boom
The payoff from localisation is visible in hard numbers. Sectors like electronics have seen the strongest gains in investment, output, and employment under Make in India. According to government reports, the various PLI schemes (covering electronics and other sectors) have attracted well over ₹1.7 lakh crore (approximately $21 billion) in new manufacturing investment and created upwards of 1.2 million jobs in just a few years. Electronics manufacturing alone accounts for a large chunk of these jobs. The establishment of hundreds of new factories has not been limited to traditional industrial centers; it’s truly a pan-India phenomenon. Industrial clusters in Sriperumbudur (Tamil Nadu), Noida (Uttar Pradesh), Hosur (Karnataka) and Tirupati (Andhra Pradesh) are witnessing rapid growth, bringing employment and infrastructure development to those regions.
The surge in production has also supercharged exports. India is now shipping out not just smartphones but also increasing volumes of other electronic goods like components, wearables, and consumer appliances. For the first time in decades, India is being recognized not just as a massive consumer market but as a contributor to global manufacturing trade. This is a significant validation of Make in India, the initiative is bearing fruit most visibly in the electronics sector, where localisation has translated into tangible economic gains.
Outlook and What Comes Next
India’s localisation push in consumer electronics is far from complete. High-value components like sensors, compressors, and microcontrollers are still largely imported. Supply chain development is uneven across regions and many small suppliers need support to meet quality and volume expectations.
However, the foundation is now stronger than ever. Local production of washing machines, air conditioners, fans, and power tools is increasing. Investments in automation, PCB production and mold development point to deeper value addition within the country.
To sustain this momentum, the industry must focus on building skilled talent, improving design capabilities, and expanding component-level R&D. With supportive policy and continued investment, consumer electronics could become a long-term engine of India’s manufacturing growth.