India Technology Hardware Market Outlook to 2028

India Technology Hardware Market Overview

The India technology hardware market is valued at USD 22 billion based on a five-year historical analysis. The growth has been driven by increasing digitization across industries, government-led initiatives like the Production-Linked Incentive (PLI) scheme, and a rise in consumer electronics demand post-pandemic. According to the Ministry of Electronics and Information Technology (MeitY) and IBEF, the electronics manufacturing sector grew significantly with domestic manufacturing contributing a substantial share. The proliferation of smartphones, enterprise servers, laptops, networking equipment, and IoT devices across sectors has underpinned this market growth.

The cities dominating the Indian technology hardware market include Bengaluru, Hyderabad, Noida, and Chennai. Bengaluru is recognized as India's Silicon Valley, housing several global and domestic OEMs, R&D centers, and component manufacturers. Hyderabad has become a hub for semiconductor design and embedded system companies. Chennai and Noida are key due to their robust electronics manufacturing clusters and logistical advantages, supporting large-scale exports and domestic demand fulfillment.

Indias Production-Linked Incentive (PLI) Scheme (2024) provides incentives of up to INR 17,000 crore to boost local production of laptops, tablets, servers, and computer hardware. Revised customs tariffs (HS Code 8471) increase duties on imported finished goods and lower input component tariffs to enhance local manufacturing. Updated BIS certification and Digital India initiatives requiring public procurement of domestically produced hardware further support India's IT hardware manufacturing ecosystem.

India Technology Hardware Market Segmentation

By Device Type: Indias technology hardware market is segmented by device type into consumer devices, enterprise devices, networking hardware, peripherals, and embedded & IoT devices. Recently, consumer devices have a dominant market share in India under the segmentation device type. This is due to the surge in smartphone penetration, rising demand for laptops for remote work and education, and increased affordability driven by domestic production under schemes like PLI. Brands like Xiaomi, HP, Lenovo, and Samsung have capitalized on online and offline retail expansion, making consumer electronics more accessible across Tier I, II, and III cities.

By Application: Indias technology hardware market is segmented by application into IT & ITeS, BFSI, manufacturing & industrial automation, education & edtech, and government & defense. Among these, IT & ITeS holds a dominant market share. This is due to Indias strong position as a global IT hub, the presence of major IT service providers, and the heavy use of enterprise hardware such as data servers, firewalls, and networking equipment. Furthermore, the increase in cloud services and demand for edge computing has driven server and data center hardware demand in this segment, with key investments from both Indian and global players.

India Technology Hardware Market Competitive Landscape

The India technology hardware market is dominated by a mix of domestic champions and global OEMs such as HP, Dell, Lenovo, Dixon Technologies, and Foxconn India. This consolidation highlights the significant influence of these key companies in driving pricing, innovation, and manufacturing localization strategies. Several players have shifted assembly lines to India due to geopolitical supply chain shifts and government subsidies, increasing their local footprint and competitiveness.

India Technology Hardware Market Analysis

Growth Drivers

Surge in Domestic Electronics Production:In 2024, India's electronics manufacturing exceeded 5.2 billion units, including computers and telecom devices, driven by the PLI scheme for IT hardware. Large-scale assembly operations emerged in Uttar Pradesh, Tamil Nadu, and Karnataka. Over 50 industrial parks were supported through the Electronics Manufacturing Clusters program. Domestic assembly of PCBs and peripherals rose 30%, generating more than 750,000 direct manufacturing-linked jobs nationwide, boosting backward integration.

Rising Demand for Consumer Tech Devices:India's growing digital consumer base fuels demand for tech hardware. With 24 million births recorded in 2024, the need for educational tablets and laptops for digital literacy is expanding. Over 325 million school-age children and increased digitization in rural education have sharply increased hardware demand. The Universal Service Obligation Fund equipped 310,000 digital classrooms, significantly driving procurement of computers and networking equipment across India.

Electronics Export Momentum Strengthens:Indias electronics exports expanded notably in 2024, shipping over 1.8 million units of PCs and tablets to Southeast Asia, Africa, and Latin America. Component exports, including motherboards and memory modules, exceeded 290,000 metric tonnes. Local packaging units exported 17,400 tonnes of ICs and chips, highlighting India's emerging capabilities in semiconductor backend processing. This growth underscores India's strengthened manufacturing position in global IT hardware markets.

Market Challenges

Heavy Reliance on Imported Semiconductors:India remains heavily dependent on semiconductor imports. According to the Ministry of Commerce, in 2024, India imported over 68,500 tones of integrated circuits (ICs), with major sources being Taiwan, South Korea, and China. Despite the Semiconductor Mission launched in 2022, fab capacity remains at infancy stages. The absence of localized silicon wafer production has resulted in extended lead times and high forex outflows. Further, nearly 90% of processors and memory chips used in Indian-assembled desktops and laptops are still imported, making the sector vulnerable to global supply chain shocks and price volatility in raw silicon materials.

Limited High-Precision Component Ecosystem:India's domestic capability to produce high-end components such as printed circuit boards (PCBs), system-on-chips (SoCs), and DRAM modules remains limited. As of 2024, data from MeitY indicates India manufactures less than 12% of PCBs used in locally assembled laptops and desktops. Imports of high-frequency processors and power management chips have crossed 44,300 tonnes, sourced mainly from Japan and the US. This overdependence stifles cost competitiveness and delays production cycles. Additionally, quality precision tooling infrastructure remains underdeveloped in many tier-2 cities, limiting MSMEs from entering the high-spec component manufacturing space.

India Technology Hardware Market Future Outlook

Over the next 5 years, the India technology hardware market is expected to show significant growth driven by continuous government support, advancements in hardware technology, and the localization of electronic manufacturing. Rising digital infrastructure investments, expansion of 5G networks, and the adoption of smart devices across urban and semi-urban areas will further catalyze growth. Moreover, Indias push for semiconductor self-reliance and data localization is likely to open new opportunities in component manufacturing and high-end computing devices.

Market Opportunities

Infrastructure Digitization Driving Hardware Demand:India's push for digital infrastructure has created rising demand for computing devices and storage hardware. As per the Ministry of Electronics and IT, over 690,000 government offices have adopted digital workflows requiring computer systems, external drives, and servers. The ongoing BharatNet Phase-II program covers 186,000 village panchayats, with networking hardware and routers installed. Additionally, the Smart Cities Mission has seen installation of 58,000 surveillance nodes and command centers that require data servers, network switches, and computing peripherals. These deployments are triggering a demand wave for hardware logistics, support services, and assembly units domestically.

Rising Demand for Enterprise IT Hardware:Rising corporate and institutional digitization is expected to significantly boost IT hardware demand in India. With active companies projected to surpass 1.85 million, sectors like BFSI, IT, and logistics will increasingly upgrade enterprise servers, desktops, and networking infrastructure. India's data center capacity, already exceeding 880 MW, will further expand, creating sustained opportunities for local manufacturers in producing servers, storage solutions, and secure routers to meet growing corporate needs.