India Inc Shifts to High-Margin Electronics Design

India's major electronics corporations are intensifying their strategic pivot from producing low-value, high-volume assemblies to focusing on the design and sale of high-margin electronic components. This transition is anticipated to gain significant momentum this year as the nation's top five electronics companies prepare to increase their investment in acquiring smaller, specialized firms. These acquisitions will target niche capabilities in areas such as electronic circuits, sensors, and displays, aiming to boost overall profitability and enhance shareholder value.

The collective operating revenue for these five key companies—Tata Electronics, Dixon Technologies, Amber Enterprises, Kaynes Technology, and Syrma SGS—reached ₹1.22 trillion ($13.6 billion) in fiscal year 2026. Analysts project a robust year-on-year growth of at least 30%, pushing this figure to an estimated ₹1.6 trillion ($17.7 billion) by the end of FY26. Further expansion is expected in the subsequent fiscal year, underscoring the sector's upward trajectory.

This strategic realignment reflects a broader industry trend towards value addition and technological advancement within India's electronics manufacturing sector. By concentrating on specialized components and strategic acquisitions, these companies are positioning themselves for sustained growth and increased competitiveness in the global market.