India’s electronics manufacturing industry is undergoing a powerful transformation. With projections aiming for a leap from $155 billion in FY2023 to an impressive $500 billion by 2030, the country is positioning itself as a global electronics powerhouse. This surge is being fuelled by rising domestic demand, targeted government policies, and India’s increasing role in international supply chains.
The production shift of global players like Apple to India signals a new era for electronics in the country. However, the spotlight is now turning towards strengthening the domestic ecosystem—not just in assembly or design, but in core components. Among these, capacitors, often underappreciated, are emerging as a cornerstone of this growth story.
Capacitors: The Silent Backbone of Electronics
Capacitors might be tiny, but they are vital. These passive components perform a crucial role in electronic circuits by storing and releasing energy—functioning almost like a battery. From smartphones and televisions to electric vehicles and industrial machinery, capacitors are present in almost every electronic product.
To understand their importance, consider this: a smartphone typically contains around 500 capacitors; tablets and notebooks about 700; and a modern television nearly 1,000. Their presence ensures seamless performance, power stability, and signal integrity—especially in printed circuit board (PCB) applications, where their role is foundational.
Global Leaders and India’s Catch-Up Game
For decades, countries like Japan, South Korea, Taiwan, China, and the US have dominated capacitor production. Investments in this space have typically ranged between $70 to $300 million, with manufacturers like Murata, Kyocera, Yageo, and Taiyo Yuden expanding to countries like Vietnam, Thailand, and Malaysia. These investments usually deliver high asset turnover and profitability within six years.
However, India is quickly narrowing the gap. Supported by initiatives like Make in India and the Electronics Component Manufacturing Scheme (ECMS), the government is encouraging domestic production of key electronic components. These policies aim to create a self-reliant supply chain, reduce import dependency, and promote value addition at home.
Innovation Spotlight: MLCCs Leading the Way
Among various types of capacitors, Multilayer Ceramic Capacitors (MLCCs) are leading innovation due to their compact size, cost-effectiveness, and high reliability. These capacitors are crucial for high-frequency and high-performance applications—making them a top choice for advanced consumer electronics.
As demand for smartphones, laptops, wearables, and electric vehicles rises globally, the need for MLCCs is expected to grow in tandem. India’s push toward semiconductor and electronics manufacturing aligns perfectly with this trend. Domestic players are now exploring this opportunity, backed by technology upgrades and favourable policies.
India’s journey in electronics manufacturing is no longer just about assembling devices. It’s about building a resilient, end-to-end ecosystem. The rise of capacitors as a strategic focus highlights a deeper understanding of what drives technology at its core.
With global momentum, government support, and a growing appetite for innovation, capacitors are set to play a starring role in India’s electronics revolution. As the country charges ahead toward becoming a global manufacturing hub, these tiny components could well turn out to be the biggest enablers.