India electronics manufacturing expands amid skilled labor shortages

India is experiencing a significant shift in its electronics sector, moving from simple assembly to deeper component manufacturing. Under the Electronics Components Manufacturing Scheme (ECMS), the Ministry of Electronics and Information Technology has approved 106 projects, representing approximately $8 billion in committed investment and an expected 74,628 direct jobs. This initiative aims to bolster domestic production of printed circuit boards, capacitors, and connectors to reduce reliance on imported kits.

In the semiconductor industry, 2026 has marked a transition toward commercial output. Notably, Micron’s $2.75 billion facility in Sanand, Gujarat, is now actively assembling and testing DRAM and NAND chips.

However, this rapid industrial expansion faces a critical challenge: a shortage of skilled labor. While the electronics industry employs over 1.4 million professionals, there is a growing gap in technical depth and advanced digital capabilities. Experts suggest the semiconductor sector could face a shortage of 250,000 to 300,000 professionals by 2027, particularly in specialized areas such as chip design, R&D, and advanced packaging. The demand for engineers proficient in industrial AI, automation, and embedded systems is currently outstripping the available supply.