Issue link: https://iconnect007.uberflip.com/i/1538999
16 SMT007 MAGAZINE I SEPTEMBER 2025 Vietnam, in particular, has experienced the fastest growth among India's suppliers. Imports from Vietnam rose by more than 350% between 2017 and 2023, increasing from a low base to over $2 billion. This growth re- flects Vietnam's expanding role in global electronics production and its deeper integration into regional supply chains. Explosive Growth in Input Imports India's most dramatic growth has occurred in electronics inputs. Between 2017 and 2023, input imports grew from $27.4 billion to nearly $61 billion, a 122% increase, the highest among all major electronics-importing countries during this period. China has been the primary driver of this growth. In both 2017 and 2023, China accounted for approximately 60% of India's electronics input imports. The absolute value of these imports more than doubled, rising from about $16.5 billion to $36.6 billion. Despite political tensions and calls for reduced dependency, India continues to rely heavily on Chinese components to support its domestic manufacturing ambitions. Other top suppliers of inputs into India include Rep. of Korea, the Taiwan region, Japan, the European Union, and Vietnam. While the EU and Japan have both seen the value of their component shipments to India increase, their share of India's total input imports declined between 2017 and 2023, reflect- ing faster growth from regional suppliers. Manufacturing Growth Fueled by Global Inputs India's role as a source of finished electronics for other countries has grown rapidly. Shipments rose from under $6 billion in 2017 to more than $28 billion S h a re of I n d i a E l e ct ro n i c I n p u t s I m p o r t s in 2023, a 380% increase. This surge has positioned India as one of the fastest-rising play- ers in global electronics trade. Much of the growth has been concentrated in smartphones and consumer electronics, fueled by global manufacturers establishing assembly opera- tions in India. India's manufacturing success has been built on deep integration into global supply chains, particularly through continued reliance on Chinese and East Asian inputs. This model mirrors the early stages of electronics growth in countries such as Vietnam and Malaysia, where production for international markets was supported by im- ported components rather than local ecosystems. India is also more dependent on a single supplier, China, than many of its peers. In 2023, approximately 60% of India's electronics input imports came from China, a share that has remained steady since 2017. This concentration introduces strategic 45risk, especially as India seeks to move up the value chain and position itself as a global manufacturing hub. To reduce vulnerability and improve long-term resilience, India will need to strengthen its domestic component base and diversify its sourcing strategy, while continuing to engage with global networks. Strategic Implications India's industrial strategy has placed strong emphasis on expanding domestic capacity in electronics manufacturing. Gov-