India's Current Rank in Global Electronics Production

Ever wondered where India stands when you line up the world’s biggest electronics factories? The short answer is that India has climbed into the top five, but the story behind that number is full of policy shifts, investment waves, and shifting consumer demand. Below we break down the latest rank, how it’s calculated, how India stacks up against the heavy‑hitters, and what the ranking means for anyone watching the sector.

Latest Rank and Production Figures

According to the 2024 report from the International Electronics Manufacturing Association (IEMA), India electronics production rank is **fourth** worldwide. The country produced **$245billion** worth of electronic goods in 2023, measured by value‑added output. That places India ahead of South Korea ($210billion) but still behind China ($1.3trillion) and the United States ($321billion).

India's electronics manufacturing sector is the segment of the Indian economy that designs, assembles, and exports electronic devices and components, ranging from smartphones to automotive electronics. In 2023 the sector employed roughly 4.2million workers and contributed 6% of the national GDP.

How Rankings Are Calculated

Most global rankings rely on **value‑added output** rather than raw shipment volumes. Value‑added captures the economic contribution after accounting for imported components, giving a clearer picture of domestic capability. The IEMA uses three core metrics:

• Export value (USD billions)
• Domestic consumption value (USD billions)
• Investment in new production lines (USD billions)

When you add those three together you get the total production figure that fuels the ranking. For India, exports accounted for $140billion, domestic consumption $85billion, and new capital investment $20billion in 2023.

India vs. the Top Producers

The table below puts India side‑by‑side with the other leading economies. All numbers are from the 2024 IEMA data set.

Trend Over the Last Decade

India wasn’t always in the top five. In 2014 the country sat at rank **9**, with a production value of $95billion. The upward trajectory looks roughly like this:

1. 2014 - Rank 9, $95bn
2. 2016 - Rank 8, $120bn
3. 2018 - Rank 7, $155bn
4. 2020 - Rank 6, $190bn
5. 2022 - Rank 5, $220bn
6. 2023 - Rank 4, $245bn

The jump is driven by three major forces:

• Policy incentives from the Ministry of Electronics and Information Technology (MeitY) that offered tax breaks for greenfield fabs.
• Massive foreign direct investment (FDI) by global EMS firms like Foxconn, Flex, and Wistron, which collectively poured $12billion into new assembly lines.
• Demand from the domestic smartphone market, which crossed 1.6billion units sold in 2023.

Key Drivers Behind India’s Current Rank

Understanding why India lifted into the fourth spot helps you gauge how sustainable the position is.

Electronics Manufacturing Clusters (EMC) - 12 dedicated zones across states like Gujarat, Tamil Nadu, and Andhra Pradesh - provide ready‑made infrastructure, power subsidies, and a skilled labor pool. The EMC model cut start‑up time for new plants by 40% compared with earlier ad‑hoc sites.

Second, the rise of Electronics Manufacturing Services (EMS) firms created a cradle‑to‑grave supply chain that kept more value within the country. For every $1billion of EMS revenue, roughly $300million stays as wages and local services.

Third, the government's Production‑Linked Incentive (PLI) scheme for electronics allocates up to 10% subsidies on capital expenditure for eligible projects, nudging multinationals to set up in India rather than shift to Southeast Asia.

Lastly, a burgeoning startup ecosystem (e.g., IoT device makers, renewable‑energy control systems) is creating homegrown demand for specialized components, which pushes local manufacturers up the value chain.

Implications for Investors, Suppliers, and Job‑Seekers

If you’re an investor, the fourth‑place ranking signals a market with rising margins and expanding export opportunities. The sector’s EBITDA margin average climbed from 6% in 2018 to 9% in 2023, according to the Confederation of Indian Industry (CII).

Suppliers of raw materials - silicon wafers, PCBs, and precision plastics - can expect stronger order books as manufacturers shift from low‑cost assembly to higher‑value production. The demand for skilled technicians is projected to rise 12% annually through 2028, making vocational training a hot investment area.

For job‑seekers, the sector now offers roles beyond line work: design engineers, quality analysts, and supply‑chain data scientists. The average salary for a mid‑level electronics engineer has crossed ₹12lakhs per year, up 30% from 2020.

How to Track Future Changes in the Rank

Staying ahead means monitoring a few reliable data sources:

• IEMA annual report - released each February, provides the definitive global ranking.
• MeitY’s quarterly “Electronics Production Dashboard” - online portal with real‑time export and investment figures.
• World Bank’s “Manufacturing Value‑Added” database - useful for cross‑checking GDP‑based numbers.
• Market research firms like Gartner and IDC - they publish sector‑specific forecasts that hint at upcoming rank shifts.

Set up alerts for any policy changes under the PLI scheme or new FDI approvals, as those events have historically triggered rank jumps. Also watch the capacity additions announced at the annual India Electronics Show (IES) in Bengaluru.