India Charts Course for Global Electronics Manufacturing Hub, Driven by Energy Sovereignty
India’s Rapid Transition to Renewable Energy Fuels Manufacturing Boom
New Delhi, March 26 – India is strategically positioning itself as a global hub for the manufacturing of electronic and electrical equipment, driven by a commitment to energy sovereignty, according to a report by the World Economic Forum (WEF). The report highlights India’s accelerated journey towards a superior energy future, attracting attention from other emerging markets.India is pursuing an industrialization strategy based on affordable solar and battery technologies, bypassing the fossil fuel-dependent path taken by Western nations and China. In 2012, China had negligible solar energy production, and coal demand showed no signs of slowing.
By 2025, India’s solar electricity generation reached 9 per cent, utilizing only a quarter of the coal per capita compared to China. India is also approaching its peak in coal generation. Road oil demand stands at 96 litres per capita, half of China’s level at a similar stage of development, and is projected to remain relatively stable.
Electric vehicle adoption is accelerating rapidly. Electric vehicles account for nearly 5 per cent of car sales, with India leading the world in three-wheelers, where electric models now represent approximately 60 per cent of the market. Electricity currently accounts for nearly 20 per cent of final energy consumption, matching China at equivalent income levels and rivalling advanced economies.
The report notes that when China crossed 1,500 kWh of electricity consumption per person, coal was ten times cheaper than solar. Today, as India approaches the same threshold, solar plus storage costs half as much as new coal.
This policy push is fueling a manufacturing boom. The electronics industry has grown nearly six-fold in a decade, reaching $130 billion. The capabilities developed for smartphone production are now being applied to the manufacturing of solar panels, batteries, and electric vehicles.
Solar module production has increased twelve-fold to 120 GW, providing sufficient capacity for self-sufficiency. Cell manufacturing, previously minimal, has reached 18 GW. Battery and electric vehicle manufacturing are rapidly catching up.
The WEF report concludes that India is strategically positioning itself to supply electro-tech to the global market.
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