India’s Growing Electronics Manufacturing Industry: Key Stocks in Focus

India’s electronics manufacturing sector has experienced remarkable growth over the past decade, with total production rising from ₹2.4 lakh crore in 2014 to ₹9.8 lakh crore in 2024. Mobile manufacturing alone has reached ₹4.4 lakh crore, with exports amounting to ₹1.5 lakh crore in 2024. Today, 98% of the mobile phones used in India are manufactured domestically, and smartphones have become the 4th largest export category in the country.

Recently, Union Minister Shri Ashwini Vaishnaw inaugurated Syrma SGS Technology’s cutting-edge laptop assembly line in Chennai. Initially, the facility will produce 100,000 laptops annually, with the potential to scale up to 1 million units within the next 1-2 years. Syrma SGS operates four manufacturing units in Chennai, with Unit 3 now beginning laptop production.

PLI Scheme for Electronics Manufacturing Industry

Launched on May 29, 2023, the Production Linked Incentive (PLI) 2.0 for IT Hardware aims to further bolster India’s electronics manufacturing landscape by offering a 5% incentive to qualifying companies. The scheme includes products like laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.

With an expected investment of ₹3,000 crore, PLI 2.0 is projected to generate production worth ₹3.5 lakh crore and create 47,000 jobs nationwide. As of December 2024, the scheme has made significant strides, securing ₹520 crore in investments, generating ₹10,000 crore in production, and creating 3,900 jobs.

Lets now have a look at the key companies set to benefit from the growing electronics manufacturing industry:

Note: The stocks mentioned above have been selected from Nifty 500 Universe and sorted based on net profit margin as of Jan 13, 2025

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.