Ritwik Mukherjee

Asone of the world's fastest-growing industries, Electronics System Design and Manufacturing (ESDM) is steadily reshaping global value chains, with India emerging as an increasingly critical player in the evolving ecosystem. With the country aspiring to become a $1 trillion digital economy by FY26 and targeting a $500 billion electronics ecosystem by 2030, electronics manufacturing has moved beyond being merely an industrial objective to becoming a strategic national mission.

At the heart of this transformation lies a new catalyst — artificial intelligence.

According to Dr Dipra Bhattacharya, management consultant and AI strategist, AI is rapidly transitioning from a technology luxury to a powerful engine of economic empowerment, particularly for micro, small and medium enterprises (MSMEs) operating within the ESDM sector. "AI is no longer an optional add-on. It is becoming the foundation for the next generation of globally competitive manufacturing enterprises," Dr Bhattacharya said.

He believes that India's MSMEs must now move beyond traditional contract assembly models and embrace high-value design capabilities and intelligent manufacturing practices if the country is to realise its electronics ambitions.

"The strategy is not about replacing human capital, but amplifying it," he said.

One of the most significant opportunities, according to him, lies in integrating AI-driven computer vision into surface-mount technology (SMT) lines. Such systems can automate real-time defect detection, enabling even smaller enterprises to achieve international quality benchmarks at a fraction of conventional costs.

Generative AI is also proving to be a game changer. By democratising printed circuit board (PCB) design, these tools are dramatically reducing product development timelines, compressing prototyping cycles from several months to just a few days.

Beyond manufacturing finished products, Indian MSMEs are increasingly finding opportunities in the broaderAI infrastructure supply chain. Companies are beginning to specialise in producing cooling modules, customised harnesses and sensor housings required by global semiconductor and chip manufacturing companies.

Industry experts say this shift towards specialised, high-value components could significantly strengthen India's position in global electronics supply chains and reduce dependence on imports.

Government support is also providing fresh momentum. The recently announced Electronics Components Manufacturing Scheme (ECMS), with an outlay of Rs 40,000 crore, alongside the flagship IndiaAI Mission and its subsidised compute infrastructure, has substantially lowered the financial barriers associated with advanced automation and AI adoption.

These policy interventions are expected to accelerate innovation and help smaller enterprises access technologies that were once available only to large corporations.

Dr Bhattacharya believes the message for entrepreneurs is unequivocal.

"Adopting AI is no longer a futuristic option; it is the immediate blueprint for cross-border scale, margin expansion and true global competitiveness," he said.

As global supply chains continue to diversify and technology becomes the defining factor in industrial competitiveness, India's ESDM sector appears poised for a new phase of growth — one where AI-enabledMSMEs could become the country's strongest manufacturing advantage.