India’s electronics sector eyes major growth, with 12 million jobs projected by 2027

India’s electronics industry is on the verge of an extraordinary transformation, as it sets its sights on achieving a manufacturing output of USD 500 billion by 2030. A recent report by TeamLease highlights the monumental journey ahead, underscoring the need for the sector to grow fivefold in the next five years to bridge a staggering USD 400 billion production gap.

Currently, domestic electronics production in India stands at USD 101 billion, with mobile phones leading the charge at 43% of the output. Other contributors include consumer and industrial electronics (12% each), electronic components (11%), and emerging segments like auto electronics (8%), LED lighting (3%), wearables and hearables (1%), and PCBAs (1%).

This remarkable growth trajectory is more than an economic milestone—it’s a catalyst for job creation. By 2027, the sector is expected to generate 12 million jobs, comprising 3 million direct roles and 9 million indirect opportunities.

Direct employment will require nearly 1 million engineers, 2 million ITI-certified professionals, and 200,000 specialists in cutting-edge fields such as artificial intelligence (AI), machine learning (ML), and data science. Non-technical roles will dominate the indirect job market, emphasizing the sector’s potential to foster diverse career paths.

Bridging the Talent Gap: A Crucial Imperative

Despite its optimistic outlook, India’s electronics manufacturing growth faces a formidable challenge: a critical talent shortage. Success in this ambitious venture hinges on bridging the skills gap, particularly in specialized areas like semiconductors, electromechanical parts, and passive and active components.

AR Ramesh, CEO of TeamLease Degree Apprenticeship, stresses the urgency of targeted skilling programs. “Scaling apprenticeship enrollments, currently growing at a 55% CAGR and projected to reach 2 million apprentices by 2027, is pivotal for creating a robust talent pipeline to meet industry demands,” he states.

Sumit Kumar, Chief Strategy Officer at TeamLease, echoes this sentiment. “Employers can drive this effort by establishing in-house training centers and collaborating with academia through Work-Integrated Learning Programs (WILP) and degree apprenticeships. Skilling, reskilling, and upskilling over 50% of the workforce will bridge the talent gap and sustain growth.”

India’s electronics sector: Strategies for Sustained Growth

To establish itself as a global leader in electronics manufacturing, India must adopt a comprehensive approach:

1. Skilling Programs: Enhancing workforce capabilities with targeted skilling initiatives, particularly in high-demand technical fields.
2. Industry-Academia Partnerships: Strengthening collaboration through apprenticeships and integrated learning programs.
3. Infrastructure Development: Investing in manufacturing hubs and supply chain enhancements.
4. Policy Interventions: Streamlining regulations to attract global investments and support innovation.
5. Capacity Building: Expanding ITI enrollments, establishing in-house training centers, and promoting apprenticeships to ensure a skilled talent pool.

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