India’s Growing Electronics Components Prompts Need For CNC Skills

India’s manufacturing industry grew 40% between June 2022 and 2024, driven by rising domestic consumption, government support, increased foreign investments and global demand for Indian-made products, catalysing CNC skills demand.

CNC skills are in demand! While China has its edge in electric vehicles (EV), India is coming in aggressive with its electronic components manufacturing. This surge in manufacturing activity in June led to the country’s fastest hiring rate in 19 years, according to HSBC India’s global economist Maitreyi Das.

Data revealed substantial growth in roles such as CNC operators, production supervisors, and machine operators, reflecting the sector’s modernisation and the demand for specialised skills. Strong communication skills are now a top requirement in 17% of jobs, followed by CNC skills at 10%, manufacturing skills at 9%, English proficiency at 8%, and CNC programming at 6%.

While no official word was given on which sectors are propelling the demand, one could guess the surge be attributed to the demand of electronics components which require CNC machining skills. What’s more, a new report by the Confederation of Indian Industry predicted the demand for electronics components and sub-assemblies in India to reach US$240 billion by 2030, supporting a US$500 billion electronics production. Priority components like PCBAs are expected to grow at a 30% rate, according to Economic Times.

The Economic Times highlighted the demand for electronics components and sub-assemblies in India is expected to grow to $240 billion to support US$500 billion worth electronics production by 2030, a new report by the Confederation of Indian Industry found.

It estimated that in 2023, this demand stood at US$45.5 billion to support US$102 billion worth of electronics production. Further, priority components and sub-assemblies including PCBAs (printed circuit board assembly) are projected to grow at a compound annual growth rate of 30%, reaching $139 billion by 2030.

The high potential PCBA segment alone, whose demand is met mostly by imports today, is expected to grow by 30%, leading to a demand creation of around $87.46 billion by 2030. Components or sub-assemblies of batteries (lithium-ion), camera modules, mechanicals (such as enclosures), displays and PCBs (printed circuit board) cumulatively accounted for 43% of the components demand in 2022, the report said. These were identified as high priority for India and are expected to grow to $51.6 billion by 2030.

“These components have either a nominal production in India or are heavily import dependent. India can hardly afford to sustain this trend of importing the priority components,” the report said.

Key challenges to domestic manufacturing of components and sub-assemblies include manufacturing related cost disabilities compared to rival economies like China, Vietnam and Mexico (10-20%), the lack of big domestic manufacturing corporations, the lack of a domestic design ecosystem for Indian companies, and the lack of a raw materials, the report noted.

“An enabling ecosystem for the components and sub-assemblies will strengthen India’s electronics manufacturing capabilities, enabling it to be self-sufficient and deeply integrated into GVCs (global value chains),” it said.

The report said that critical actions are required to transition India’s electronics sector ecosystem from ‘import dependent assembly led manufacturing’ to ‘component level value-added manufacturing’. It recommended fiscal support of 6-8% for 6-8 years for select components and sub-assemblies and introducing SPECS 2.0 (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors) with 25-40% subsidy across brownfield and greenfield categories.

It also suggested bringing import tariffs on priority sub-assemblies and components to under 5% for global competitiveness, and aggressively pursuing free trade agreements with the EU, UK, GCC countries and emerging economies in Africa. The policy support would bring benefits such as job creation of around 2.8 lakhs by 2026 and an increase in GDP, helping to firmly position India as a global hub for electronics manufacturing, the report said.

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