India’s PCB Market: Import Dependence and Urgent Semiconductor Scale-Up

India currently imports around 85-88% of its printed circuit board (PCB) demand, reflecting a significant reliance on foreign suppliers despite a rapidly expanding domestic electronics sector. Experts at the Bengaluru Tech Summit have emphasized the urgent need to scale up semiconductor and PCB manufacturing capabilities within the country to reduce import dependency and boost self-reliance in this critical technology segment.

Current Market Landscape and Import Reliance

In the fiscal year 2024-25, India’s PCB demand was valued at approximately $4.2 billion, with imports accounting for nearly $3.7 billion or 88% of this total. Domestic manufacturing contributed just about $600 million, though this segment has been growing at a compound annual growth rate (CAGR) of 27.3% over the past three years, outpacing earlier periods. This growth is largely driven by increasing demand from consumer electronics and electric vehicles (EVs), alongside government support through initiatives such as Make in India, Electronics Manufacturing Clusters Scheme (ECMS), and Production Linked Incentive (PLI) programs. Additionally, recent anti-dumping duties on imported bare PCBs have helped local manufacturers gain some competitive advantage[1][5].

Growth Projections and Opportunities

The Indian PCB market is poised for substantial growth over the next decade. Market research forecasts project the sector to reach valuations between $14 billion by 2030 and as high as $24.7 billion by 2033, with CAGR estimates ranging from approximately 15.5% to 16.4%. This growth is underpinned by rising domestic electronics manufacturing, demand for smartphones, IoT devices, 5G technology, and EVs, which all require advanced and high-density PCBs. The automotive sector, in particular, is a major driver due to the integration of sophisticated electronics in electric and autonomous vehicles[3][6].

Challenges in Domestic PCB Manufacturing

Despite positive growth forecasts, India’s PCB industry faces significant challenges. A critical bottleneck remains the limited availability of high-end raw materials such as copper laminates, photoresists, and specialty chemicals, which are mostly imported from countries like China, Taiwan, South Korea, and the US. Additionally, India currently lacks large-scale production facilities capable of manufacturing advanced multilayer and high-density interconnect (HDI) PCBs at scale and quality comparable to global leaders. Consequently, finished advanced PCBs continue to be imported to meet domestic demand for high-technology applications[4][6].

Government Initiatives and Industry Response

The Indian government has strongly promoted self-reliance in electronics manufacturing through policy measures and incentives. The Make in India initiative and the PLI scheme have encouraged investment in PCB fabrication infrastructure, improved quality standards, and fostered partnerships with global players. These efforts have started to bear fruit, with increasing investments, new projects, and a gradual buildup of capabilities in manufacturing multilayer and flexible PCBs. Export opportunities are also growing, as Indian manufacturers gain footholds in Asian, European, and North American markets, especially for standard and mid-complexity PCBs[4].

Call for Semiconductor Scale-Up

Experts at the Bengaluru Tech Summit have highlighted that the PCB sector’s future growth is closely tied to the broader development of India’s semiconductor industry. Scaling up semiconductor fabrication and design capabilities is crucial to supporting advanced PCB manufacturing and reducing the country’s import dependence. Enhanced automation, process reliability, and vertical integration across the electronics supply chain are essential to transform India into a global manufacturing hub for PCBs and semiconductors[1].

Conclusion

India’s PCB market is growing rapidly, fueled by strong domestic demand and favorable policy support. However, the country remains heavily reliant on imports for both raw materials and sophisticated PCBs, meeting only about 12-15% of its needs through domestic production. The government’s initiatives and industry efforts are paving the way for increased local manufacturing, but significant investments in semiconductor scale-up and supply chain maturity are critical to achieving self-reliance and global competitiveness in this sector.

Written by Deepak Periyasamy.

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