India’s Electronics Ambition: From Assembly Hub to Global IP Owner
India stands at a pivotal moment in its journey to become a global electronics manufacturing powerhouse. While the nation has rapidly scaled up production in recent years, particularly in assembling devices for both domestic consumption and export, the true measure of success lies in moving beyond assembly and cultivating indigenous intellectual property (IP). This shift, according to Atul Lall, Managing Director & CEO of Dixon Technologies, requires a concerted effort to deepen value addition, build a specialized talent pool, embrace artificial intelligence, and own the designs and technologies that drive the industry. The conversation unfolded at Business Standard’s BS Manthan summit, highlighting a critical inflection point for the sector.
Dixon Technologies, a leading Indian electronics manufacturing services (EMS) provider, exemplifies this evolution. Founded during a period when India’s economic landscape favored IT services over manufacturing, the company began with a modest capital base of ₹49 lakh (approximately $59,000 USD as of February 24, 2026, based on historical exchange rates). Lall recounted that, in the early days, policy support for manufacturing was limited, and the prevailing mindset prioritized “buy, not make,” relying heavily on global supply chains. But, the company persevered, capitalizing on emerging opportunities and evolving into a significant player in the Indian electronics ecosystem. Today, Dixon boasts a substantial capacity in mobile phone manufacturing, capable of producing around 60–65 million units annually, serving a domestic market of approximately 150 million mobile phones, with Android devices accounting for 130–135 million units. Atul Lall has been instrumental in steering this growth since the company’s inception.
From Crisis to Scale: The Dixon Story
Lall emphasized that Dixon’s origins were rooted in responding to challenges. “Every crisis creates an opportunity. That’s how Dixon was born,” he stated, reflecting on the company’s early days navigating a turbulent economic climate. The initial focus on EMS was unconventional at a time when outsourcing wasn’t yet a mainstream business concept in India. The company’s growth trajectory demonstrates a remarkable ability to adapt and thrive in a dynamic environment. Dixon’s expansion across India, from Noida and Greater Noida to Uttarakhand, Tirupati, Sri City, and Chennai, reflects a strategic approach to leveraging fiscal incentives, port access, efficient logistics, and a skilled workforce. Currently, the company is evaluating Gwalior, Madhya Pradesh, as a potential location for telecom manufacturing, attracted by the region’s expressway connectivity and established engineering college network.
The Role of Global Competition and the Acquisition of Capability
The increasing presence of global giants like Apple and Samsung in India naturally raises questions about the competitive landscape for domestic EMS players. However, Lall views this competition not as a threat, but as a catalyst for growth and innovation. He drew a parallel with the transformation of India’s automotive sector, arguing that the entry of major international players is essential for driving industry standards and fostering the acquisition of advanced capabilities. “For any industry to take off, it requires flag-bearers,” he explained. “Any industry, more than the financial matrix, is about the acquisition of capability. That’s what Apple brings to the table.” This perspective underscores the importance of embracing collaboration and learning from global leaders to accelerate India’s progress in electronics manufacturing.
The Critical Need for Indigenous IP and Specialized Talent
While assembly capabilities are crucial, Lall stressed that the next leap for India’s electronics industry lies in “owning IP.” This requires a significant investment in developing a skilled workforce capable of handling complex tasks such as precision engineering, thermal management, optics, tools and dies, and advanced electronics. He estimates that India needs to produce at least 100–200 engineers with these specialized skills each year. Addressing this talent gap necessitates close collaboration between industry and academia to design relevant curricula, train faculty, and establish centers of excellence. Lall emphasized the importance of creating attractive career pathways, suggesting that fresh graduates should have a clear trajectory towards earning ₹80–90 lakh (approximately $96,000 – $108,000 USD as of February 24, 2026) within five to six years.
Government Support and Policy Initiatives
Lall acknowledged the pivotal role of government schemes in driving the growth of India’s electronics manufacturing sector. He specifically credited the Modified Special Incentive Package Scheme (MSIPS), the Phased Manufacturing Programme, the Production Linked Incentive (PLI) scheme, and the Investment Promotion Scheme for Electronics Manufacturing (ISM 1.0) for creating a favorable environment for investment and innovation. He suggested that continued support for these schemes, for another two to three years, could be instrumental in helping India establish itself as a major player in global electronics markets and deepen its design-led capabilities. The PLI scheme, launched in 2020, has been particularly effective in attracting investment and boosting domestic production across various sectors, including electronics. Atul Lall’s leadership at Dixon Technologies has been closely aligned with these government initiatives.
Key Takeaways
- Shift from Assembly to IP Ownership: India must prioritize developing indigenous intellectual property to move beyond being solely an assembly hub.
- Talent Development is Crucial: A significant investment in specialized engineering skills is essential to support design and innovation.
- Industry-Academia Collaboration: Close cooperation between industry and educational institutions is needed to create relevant curricula and training programs.
- Government Support Remains Vital: Continued policy support, such as the PLI scheme, is critical for sustaining growth and attracting investment.
The journey towards becoming a global electronics powerhouse is undoubtedly complex, but India has demonstrated significant progress in recent years. The insights shared by Atul Lall at the BS Manthan summit underscore the importance of a strategic, collaborative, and forward-looking approach. The next phase will require a sustained commitment to innovation, talent development, and policy support to unlock India’s full potential in the global electronics landscape. Further updates on the implementation of the PLI scheme and related government initiatives are expected in the coming months, providing further clarity on the path forward.
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