Best State for Electronics Manufacturing in India

When it comes to electronics manufacturing, the process of designing, assembling, and producing electronic devices like smartphones, circuit boards, and home appliances. Also known as electronic goods production, it's no longer just about importing gadgets—India is building its own ecosystem, and one state is pulling ahead. The Gujarat, a western Indian state with major industrial corridors and export-oriented policies has become the top hub for electronics factories, thanks to its special economic zones, reliable power supply, and fast-track approvals. But it’s not alone—Tamil Nadu, a southern state with a strong engineering workforce and decades of hardware experience is right behind, especially in components like printed circuit boards and LED lighting.

Why does this matter? Because the government’s Production Linked Incentive (PLI) scheme is pouring billions into local production, and companies are moving out of China. If you’re looking to start a small electronics business, source parts, or even just understand where your next phone was made, knowing which state leads gives you an edge. Gujarat’s Vadodara and Surat clusters now host over 200 electronics units, from phone assembly lines to solar inverter makers. Tamil Nadu’s Chennai and Hosur zones focus on high-volume component manufacturing, supplying brands across Asia. The real shift? It’s not about cheap labor anymore—it’s about speed, scale, and supply chain control.

Other states like Karnataka and Uttar Pradesh are trying to catch up, but they still lag in infrastructure and policy execution. The best state for electronics isn’t just the one with the most factories—it’s the one that makes it easy to build, test, and ship products fast. And right now, that’s Gujarat. Below, you’ll find real examples of how entrepreneurs, small manufacturers, and even foreign investors are using this shift to build profitable businesses—without needing a huge budget or a tech degree.