India’s printed circuit board (PCB) industry is entering a high-growth phase. According to the latest projections, the Indian PCB market growth forecast suggests a compound annual growth rate (CAGR) of 28% through 2026. This surge is fueled by several converging trends—booming electronics manufacturing, favorable government policies, and rising demand for advanced tech products.
In this article, we break down the key drivers of this growth, analyze market trends, and explore what this means for stakeholders in India’s electronics ecosystem.
Expanding Electronics Manufacturing in India
India is rapidly emerging as a global manufacturing hub for electronics. Government initiatives like Make in India, PLI (Production-Linked Incentive) schemes, and Digital India have attracted significant investment into the domestic production of smartphones, wearables, automotive electronics, and more.
Printed circuit boards are foundational to all electronic devices. As electronics manufacturing scales, so does the demand for PCBs—driving exponential growth in this sector. Major manufacturers are also localizing their supply chains, further boosting the Indian PCB industry.
Government Incentives Fueling Domestic Production
The Indian government is actively encouraging the localization of electronics components, including PCBs, to reduce dependency on imports. Under the PLI scheme for electronics, more than ₹38,600 crore (approx. $4.7 billion) has been allocated to support domestic manufacturing.
This push is not just reducing the import bill but also creating a fertile ecosystem for PCB fabrication and assembly. By 2026, India aims to become self-reliant in key components, with PCB manufacturing playing a central role.
Rising Demand for High-Density and Flexible PCBs
With the electronics boom, demand is shifting towards more complex PCB architectures. Smartphones, IoT devices, electric vehicles (EVs), and smart appliances require high-density interconnect (HDI) and flexible PCBs to support compact and lightweight designs.
Indian manufacturers are upgrading their capabilities to meet this evolving demand. Investments in advanced fabrication technologies—such as laser drilling, automated optical inspection (AOI), and multilayer stack-ups—are becoming more common, positioning Indian firms to compete globally.
Automotive Sector Driving Innovation
India’s auto industry, particularly the EV segment, is a major catalyst for PCB demand. Electric vehicles use a significantly higher number of PCBs per unit compared to traditional vehicles. These boards manage everything from battery management systems to infotainment and advanced driver-assistance systems (ADAS).
With India’s push towards e-mobility and expectations of EVs accounting for 30% of vehicle sales by 2030, the need for automotive-grade PCBs is set to spike, adding another layer of momentum to the Indian PCB market growth forecast.
Localization of Supply Chains
Global disruptions and geopolitical tensions have prompted companies to diversify their manufacturing bases. Many international players are looking at India not just as a market but also as a manufacturing destination.
This trend is leading to the establishment of local PCB facilities, joint ventures, and technology transfer agreements. The aim is to reduce lead times, lower costs, and gain better control over supply chains.
Export Potential and Global Competitiveness
India is gradually emerging as a viable exporter of PCBs to regions like the Middle East, Southeast Asia, and Europe. Competitive labor costs, improving quality standards, and adherence to international certifications are enhancing India’s global standing in PCB manufacturing.
Domestic players are increasingly aligning with global OEM requirements, making India a rising player in the global PCB supply chain.
Challenges and the Road Ahead
Despite the promising forecast, India’s PCB industry faces challenges such as:
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Limited access to raw materials (e.g., copper foil, laminates)
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High capital expenditure for setting up fabrication units
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Need for skilled labor and training in high-end manufacturing
However, with strategic policy support, public-private partnerships, and growing market demand, these barriers are being systematically addressed.
FAQs
Q1. What is the projected growth rate for the Indian PCB industry by 2026?
The Indian PCB industry is expected to grow at a CAGR of 28% and reach significant market value by 2026.
Q2. What factors are driving the Indian PCB market growth?
Key drivers include the electronics manufacturing boom, government incentives, rising demand for high-end PCBs, the growth of the EV sector, and increasing export potential.
Q3. Which sectors are the biggest consumers of PCBs in India?
The largest sectors include consumer electronics, automotive (especially EVs), telecommunications, industrial electronics, and defense.
Q4. How is India improving its competitiveness in PCB exports?
India is enhancing its competitiveness through better quality standards, cost efficiency, advanced manufacturing capabilities, and compliance with global certifications.
Q5. What challenges does the Indian PCB industry face?
Major challenges include limited raw material availability, high setup costs, and the need for a skilled workforce. However, these are gradually being addressed through policy support and industry development.
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