India's ICT, EV manufacturing boom promises huge opportunities for Taiwanese industrial players

Ninelu Tu, Taipei; Willis Ke, DIGITIMES Asia 0


India has been trying hard to strengthen the development of its manufacturing industries since Prime Minister Narendra Modi took office in 2024, highlighted in its slogans ranging from "Make in India" to "Self-Reliant India." In particular, its promotion of ICT and automotive industries aligns with Taiwan's current industrial development trend, which will inevitably bring huge market opportunities for Taiwanese manufacturers if they can grasp the trend well.

While India's electronics manufacturing output may not be a major player globally in terms of output value, the Indian market's rapid growth makes it very attractive to manufacturing investments, according to Tom Lo, senior analyst and deputy director at DIGITIMES Research.

In particular, the booming Indian mobile phone industry has attracted numerous local Electronics Manufacturing Services (EMS) providers and international players. This has led to India's handset production nearly meeting domestic demand, with the potential for future export growth, Lo said.

Lo noted that India currently relies on China to supply around 80% of information products, but its burgeoning digital landscape is driving a clear demand for domestic PC production. This intent has been evident in past attempts, like import control measures, to encourage related supply chain players to set up manufacturing operations in India, though those efforts weren't successful.

In contrast to its reliance on imports for PCs, India's robust automotive industry can serve its massive domestic market demand while also playing a significant role globally, according to DIGITIMES Research analyst and project manager Evan Chen. This strength, combined with the rising demand for new energy vehicles (NEVs), has led India to establish clear policies and goals for boosting domestic EV production and sales, presenting substantial growth opportunities, Chen noted.

However, Chen pointed out that despite government efforts to bolster its EV industry, India is still weak in its manufacturing capabilities for crucial EV components like batteries and power systems. This presents a significant opportunity for relevant Taiwanese companies to enter the Indian market.

Tom Lo highlighted several key transformations within India's manufacturing sector, including a shift from assembly to in-depth manufacturing, a policy focus evolving from smartphones to broader information products, and a transition from domestic-centric to export-oriented sales. Additionally, India's growing domestic brands necessitate multifaceted entry approaches for Taiwanese companies to maximize their value proposition in the Indian market.