India’s ESDM Sector: Amplifying Growth in a Digital Era

 

Introduction

The Electronics System Design and Manufacturing (ESDM) sector stands at the forefront of India’s economic transformation. As one of the world’s fastest-growing industries, ESDM is reshaping global value chains and India is rapidly emerging as a critical node in this ecosystem. With the country poised to become a $1 trillion digital economy by FY26, electronics manufacturing is no longer just an industrial priority but a strategic national mission.

Currently valued at $155 billion, India’s electronics market derives nearly 65% of its demand from domestic production, underscoring the success of policy-led manufacturing expansion and import substitution.

Uttar Pradesh: Powering India’s Electronics Manufacturing Engine

A National Leader in ESDM

Uttar Pradesh has rapidly positioned itself as one of India’s most compelling destinations for electronics manufacturing. The state today:

  • Is the largest exporterof consumer electronics in India
  • Accounts for 40% of India’s mobile phone manufacturing
  • Houses 55% of India’s mobile componentmanufacturing units
  • Hosts 230+ operational ESDMcompanies

Greater Noida alone is home to global giants such as Samsung, OPPO and VIVO, together accounting for nearly 40% of India’s mobile manufacturing output. 

 

Strengthening Uttar Pradesh’s Electronics Supply Chain under ECMS

Uttar Pradesh’s ESDM leadership is further reinforced through targeted component and sub-assembly manufacturing under the Electronics Components Manufacturing Scheme (ECMS) implemented by the Ministry of Electronics and Information Technology (MeitY).

Rather than assembly-led growth alone, ECMS enables deep localisation of critical components and sub-assemblies within Uttar Pradesh, directly supporting the state’s large mobile phone, consumer electronics and IT hardware manufacturing base in Noida, Greater Noida and along the Yamuna Expressway corridor.

ECMS-Aligned Manufacturing Capabilities in Uttar Pradesh

Key ECMS-supported strengths aligned with Uttar Pradesh’s ecosystem include:

Sub-Assembly Manufacturing

  • Display Module Sub-Assembly manufacturing by Samsung Display Noida Private Limited, strengthening the state’s role in advanced smartphone and display ecosystems.

Component & Enclosure Manufacturing

  • Enclosures for mobile phones and IT hardware, supporting large anchor manufacturers and EMS players operating in the state.
  • High-precision electronic components aligned with consumer electronics and IT hardware manufacturing clusters.

Supply Chain Integration

  • ECMS-driven localisation strengthens backward integration for mobile phone manufacturers producing nearly 40% of India’s handsets.
  • Reduced dependence on imported components, improved supply reliability and faster production cycles.

Strategic Impact on Uttar Pradesh’s ESDM Ecosystem

The ECMS-linked component manufacturing push delivers long-term structural advantages to Uttar Pradesh:

  • Transition from assembly hub to value-added manufacturing base
  • Import substitution for critical electronics components
  • Higher value retention within the state
  • Employment generation in skilled electronics manufacturing roles
  • Technology upgradation across displays, precision components and materials

This supply-chain depth significantly enhances Uttar Pradesh’s competitiveness as a full-spectrum electronics manufacturing destination, capable of supporting both global anchor investors and MSMEs.

World-Class ESDM Infrastructure & Clusters

Uttar Pradesh has adopted a robust cluster-based development approach:

Greenfield ESDM Clusters

  • Sector 28, Yamuna Expressway
  • Eco-tech VI & VII, Greater Noida

Upcoming Electronics Manufacturing Clusters (EMCs)

Focused on:

  • Mobile phones & components
  • Consumer durables & IT hardware
  • Telecom, drones, defence electronics, medical electronics, robotics and IoT

The state is also promoting power electronics, LED lighting, smart energy meters, and advanced manufacturing technologies including AR/VR, drones, additive manufacturing and robotics.

 

Uttar Pradesh’s Economic & Infrastructure Advantage

  • $301 billion economy (2022–23), contributing ~8% of India’s GDP
  • 3rd largest state economyand 5th largest exporter
  • 240 million population, offering one of India’s largest consumer markets
  • 56% working-age population, ensuring abundant manpower
  • 8x increase in capital outlaybetween FY18 and FY23

Wholesome Infrastructure Ecosystem

  • India’s largest expressway network
  • 5 international& 16 domestic airports
  • Largest road and railway networkin the country
  • Eastern & Western DedicatedFreight Corridors
  • Rapid Rail Transit System(Delhi–Meerut)
  • India’s first multimodal inland waterways terminalon the River Ganga

 

Policy Support for Electronics Manufacturing

Uttar Pradesh offers comprehensive policy support through:

  • Capital subsidies, land rebates and tax exemptions
  • Vendor development programs for import substitution
  • Skill development in partnership with industry and academia
  • R&D and innovation grants
  • Centres of Excellence (CoEs) with reputed institutions

 

Success Stories from Uttar Pradesh

Samsung

Samsung’s Noida facility, inaugurated in 2018, is the world’s largest mobile phone manufacturing plant, with an investment of ₹4,825 crore, supported by capital subsidies, stamp duty exemptions and incentives under SPECS.

Dixon Technologies

Dixon Technologies operates nine manufacturing plants in Uttar Pradesh. Its subsidiary Padget Electronics runs a large smartphone manufacturing facility in Noida with an annual capacity of 25 million units and employment potential of 5,000 people.

 

Key Investment Opportunities in ESDM

Value Chain Expansion

  • Smartphones, laptops, televisions and infotainment systems
  • Automotive electronics and communication systems
  • LCDs and advanced display technologies

Import Substitution

  • Opportunity to replace ₹5,100 crore ($723 million) worth of imports
  • Products include monitors, storage devices, conductors and transmission equipment

Export Growth

  • Mobile phones and components for ASEAN, Japan and South Korea
  • Computers and laptops for the USA, Germany, UK and Japan

 

Conclusion: Invest in Uttar Pradesh, Build for the World

As India accelerates toward becoming a global electronics manufacturing hub, Uttar Pradesh stands ready to lead the charge. With ECMS-driven supply-chain depth, strong fiscal incentives, world-class infrastructure and a future-oriented policy vision, the state offers an end-to-end ecosystem for electronics manufacturing.

From global anchor investors to MSMEs, Uttar Pradesh invites the world to build, scale and export from India driving the next chapter of India’s digital and manufacturing revolution.