Best Country to Live In for Electronics Manufacturing: Why India Stands Out

Best Country to Live In for Electronics Manufacturing: Why India Stands Out
Rajen Silverton Jun, 18 2025

Ever wondered where the action really is in electronics manufacturing? India is in the thick of it right now. The country’s been making huge leaps—not just as a place to buy cheap phones, but as a major global hub for designing and building everything from microchips to wearables.

But is India actually the best country to live and work in if you’re in this industry? Let’s get practical. You want somewhere with reliable supply chains, strong government policies, loads of talent, and—let’s be honest—somewhere your quality of life isn’t stuck in the slow lane. That’s where India’s mix stands out: lower costs, massive young workforce, plus government schemes like "Make in India" that actually get things moving faster.

If you’re eyeing the next big opportunity, or even just want the inside scoop on what life is like in India’s buzzing cities and fast-growing tech parks, this is the real-world breakdown you need. No fluff—just what works, what doesn’t, and what you should know before packing your bags or parking your capital here.

India’s Rise in the Electronics Manufacturing Game

Just a decade ago, hardly anyone would call India a key player in electronics manufacturing. That changed fast. India’s now the world’s second-biggest mobile phone producer, only behind China. Over 200 new mobile manufacturing units have popped up in places like Noida, Chennai, and Bengaluru since 2014. Brands like Samsung, Xiaomi, and Apple all have major production here—Apple made more than $7 billion worth of iPhones in India between March 2023 and March 2024.

Government initiatives have been a big push. The "Make in India" and Production-Linked Incentive (PLI) schemes got international giants and local startups to build factories, hire workers, and invest big. Only a few years ago, India imported almost all its microchips and displays. Now, it’s aiming to be self-reliant, with factories like Vedanta and Tata building semiconductor plants expected to go live by 2026.

It isn’t only about big companies. There’s a whole ecosystem—from parts suppliers to logistics chains—cropping up to support the industry. Cities like Hyderabad, Pune, and Coimbatore are becoming hotspots for circuit assembly, testing, and R&D. The number of jobs has exploded, with the sector expected to generate over 1 million direct jobs by 2025.

India also stands out for its affordable yet skilled workforce. Tech grads are coming out of colleges in droves. English is widely spoken, which makes jumping in easier for foreign companies or expats. Fast internet and an improving power grid make daily work smoother than you’d expect, even in smaller cities.

Fact is, India’s story isn’t hype. The mix of new policies, local talent, and global demand is making the country a serious spot to work, live, and build in electronics manufacturing right now.

Comparing the Field: How Does India Stack Up?

Stacking India against the electronics manufacturing heavyweights like China, Vietnam, and Mexico? Here’s where it gets interesting. India has started to break away from just being the world’s back office—now, it’s pulling its weight on factory floors and R&D labs, too. And it’s not all talk. Big brands like Apple, Samsung, and Foxconn have already made India a main base for building devices sold everywhere.

So, what really puts India in the same league (or ahead) of its competitors?

  • electronics manufacturing costs in India are some of the lowest you’ll find, especially if you’re setting up large-scale units.
  • The government keeps rolling out incentives—like lower taxes for new factories and cash rebates—for companies who commit to “Make in India.”
  • There’s a talent pool of over two million engineers entering the workforce every year. That means you get fresh ideas and reliable hands without paying Silicon Valley salaries.
  • India is improving its logistics—new highways, ports, and industrial corridors are making it easier to move materials and ship out finished goods.

But how does it actually measure up? Here’s a quick snapshot with some numbers that matter:

CountryAvg. Manufacturing Cost Index (2024)Engineers Graduating AnnuallyEase of Doing Business Rank (2024)Global Export Share (Electronics, %)
India802,000,000633%
China701,300,0003132%
Vietnam85100,000701.7%
Mexico90114,000601.4%

It’s clear China still runs the show for sheer scale, but India isn’t far behind on costs and its engineering pipeline is huge. India’s government is also much more hands-on now about building local supply chains—there are even brand-new electronics clusters popping up outside major cities like Bengaluru and Noida.

Where India lags? Red tape still slows things down at times, and ports can be crowded. But compared to ten years ago, things have picked up big time, especially for companies that take the time to learn how things work here.

If you’re all about cost savings, tapping into young tech talent, and future-proofing supply chains, India’s slot on the global map keeps climbing. It’s not number one in every category, but it’s closing the gap fast.

Inside the Indian Electronics Ecosystem

If you look inside India’s electronics manufacturing scene, there’s a lot more happening than most people think. The country’s set up huge clusters in places like Bengaluru, Noida, and Chennai, which are basically tech hotspots where factories, suppliers, and buyers are all packed close together. That cuts down costs and speeds things up for everyone involved.

One big push comes from the Indian government. They rolled out the Production Linked Incentive (PLI) scheme, which rewards companies for making more stuff locally. Thanks to that, big players like Foxconn, Samsung, and Tata Electronics are pouring billions into new plants here. In fact, India produced around $101 billion worth of electronics in 2024, with smartphone exports alone hitting a record $15 billion.

Key Stat2024 Data
Electronics Production Value$101 Billion
Smartphone Exports$15 Billion
Direct Jobs in the Industry2.5 Million

The supply chain is getting smoother too. There’s now a bigger push to make crucial parts—microchips, batteries, display panels—right in India, so companies don’t get stuck waiting forever for imports. Local suppliers are catching up fast, and you’ll find plenty of small shops in places like Hyderabad and Pune feeding into the bigger assembly lines.

Talent? India’s got one of the world’s biggest pools of engineers and skilled workers. Major colleges like IITs and NITs pump out thousands of graduates every year, many of them hired straight into electronics manufacturing jobs or even starting their own ventures.

  • If you’re thinking of moving operations, check if your state offers extra tax breaks or fast-track approvals—those perks can save a ton of money and headaches.
  • Most folks in the ecosystem use English at work, and digital tools are everywhere—so onboarding is quicker than you’d expect.
  • The cost of setting up shop here is way lower compared to places like the US, China, or Europe, especially when you factor in rent, wages, and even basic utilities.

So if you want to plug into an ecosystem that’s growing fast, packed with talent, and getting more efficient by the month, India is definitely worth a serious look.

Living and Working in India: Day-to-Day Realities

Living and Working in India: Day-to-Day Realities

If you’re considering a move to India for a job or business in electronics manufacturing, it helps to know what your everyday life might actually look like. Expect to deal with a lot of buzz—cities like Bengaluru, Hyderabad, and Pune are always on the go, full of tech parks and coworking spaces. Traffic can be wild, especially in bigger cities. Most locals get around by car, scooter, metro, or even rickshaw. Apps like Ola and Uber will save you some hassle when avoiding crowded public transport during rush hour.

For living arrangements, you’ll find choices all over the price range. Modern apartments in tech areas have backup power, water tanks, and Wi-Fi, but double-check if they’re included. Rents in the main cities have gone up in the past two years—Bengaluru’s tech areas, for instance, can cost you as much as comparable spots in Eastern Europe. Still, services like domestic help are affordable and common, so you’ll probably have someone handle cleaning, laundry, or even cooking.

Work culture in India’s electronics sector is a mix: fast-paced with a big focus on deadlines and flexibility. Most companies operate six days a week, but the younger tech startups often stick to five. Colleagues will usually communicate openly, but English is the main working language in most offices, so you won’t need to worry much about language barriers.

One thing a lot of people are surprised about is paperwork—government rules here get pretty detailed. Whether it’s opening a bank account, getting a mobile SIM, or registering at the local police station (sometimes required for long-term foreigners), it pays to keep your documents handy and a digital copy on your phone. Getting a PAN card (for taxes) or Aadhaar (for ID) is pretty much a must for anything official.

  • Tap into local e-wallets and payment platforms like Paytm or Google Pay; cash is being replaced quickly, even in small shops.
  • Don’t skip health insurance—while basic healthcare is cheap, private hospitals are the go-to for expats. Most city-based companies cover employees, but check what’s included.
  • Internet is cheap and everywhere, but the connection can dip during monsoons, so have mobile data as backup.
  • Public holidays or “bandhs” (strikes) can interrupt normal schedules. Keep an eye on local news or ask office colleagues what’s coming up.

Cultural shock can hit, but networking groups—both expat and local—are super active online. Think of it like a jumpstart for your social and work life. Once you settle in, you’ll see why so many pros stick around: the work is challenging, but the opportunities and daily life—full of surprises—make the ride worth it.

Tips for Expats and Global Businesses

If you’re planning to move operations or even your life to India for electronics manufacturing, there are a few real-world things you’ll want to keep in mind. The pace, paperwork, and perks here don’t always work like you’re used to. Some practical know-how can save you a load of time and money.

First up, be ready for the famous Indian bureaucracy. Setting up a company, getting licenses, or signing lease agreements can feel like running an obstacle course. It’s smart to hire a local consultant or law firm, especially for navigating the paperwork. Digital compliance is getting easier, but paperwork is still a thing—always keep physical and digital copies of everything.

StepHow Long It Typically Takes (2024)
Company Registration15-30 days
Import/Export License7-21 days
Factory Setup Approvals30-90 days

When it comes to hiring, you’ll find plenty of skilled engineers, especially in cities like Bengaluru, Hyderabad, and Pune. Labor costs are way lower compared to the US or Europe, but make sure you understand local labor laws. For example, working weeks in India are six days at many factories—good to check before you commit.

Housing and commute are another biggie. Indian metros are crowded but improving fast. Using company-leased apartments is the norm for expats, and almost every company offers cab services for employees (thanks to the wild traffic). If you’re moving with family, check out international schools—they’re available in all the main cities.

Another thing: business in India is built on relationships. Don’t expect decisions overnight. Invest time in building trust with partners and suppliers—having lunch, sharing some chai, and showing you’re serious about staying makes all the difference.

  • Double-check tax incentives. Many states offer special deals for electronics factories—some throw in GST rebates, others have zero power cuts in special economic zones.
  • Don’t underestimate cultural holidays. Factory shut-downs for festivals like Diwali are normal—plan production schedules around them.
  • Know your import rules. India charges duties on a lot of key components, but exemptions exist under certain government schemes if you do value-added manufacturing locally.

Finally, day-to-day banking and payments are pretty seamless now. UPI, India’s instant payment system, makes money transfers quicker than most countries’ systems. And if you’re managing cash flow, look for local banks with solid digital support.

Is India the Right Choice for You?

If you’re in electronics manufacturing and thinking about plant relocation, business expansion, or even a new job, India can look like a goldmine. But before you jump, let’s break down what living and working here actually means for people in this industry.

India’s cost advantages are real. Labor costs hover lower than in China, Vietnam, or Eastern Europe—sometimes by up to 30%. Electricity and utilities are improving, though there are still places where power supply can get patchy. But for most big tech cities like Bengaluru, Hyderabad, and Chennai, you’re covered.

Talent is India’s big plus. Over 1.5 million engineers graduate every year. The country has a robust pool of design engineers, PCB experts, and embedded systems specialists, and English is everywhere in business. This makes hiring and collaborating pretty straightforward, especially for multinationals.

Let’s get specific. Here’s a quick look at how India stacks up on some key factors:

FactorIndiaChinaVietnam
Average Monthly Salary (Engineer)$750$1200$985
Corporate Tax (after incentives)15-17%25%20%
Ease of Doing Business (World Bank, 2023)Rank 63Rank 31Rank 70
English Proficiency (EF Index 2023)HighLowLow

The Indian government is sweetening the deal with incentives. The Production Linked Incentive (PLI) scheme hands out cashbacks to electronics makers hitting certain targets. This has already pulled in investments from big names like Apple, Samsung, and Foxconn. Logistics, though, can sometimes be a pain—ports are improving but still slower than China, so factor in longer shipping times.

One thing people rarely talk about is community. Because the electronics manufacturing scene in India is buzzing, you’ll find solid expat networks, international schools, and support for newcomers in the main manufacturing hubs. But city traffic and pollution are real headaches in some places, so pick your location wisely if you’re moving with family.

  • Weigh costs against real earnings—not just salary, but also rent, transport, and utilities.
  • Get help from local legal and tax experts before making big commitments.
  • If you’re moving, check out housing options in tech hub neighborhoods—they’re usually well-connected and foreigner-friendly.
  • Stay connected with industry groups and chambers (like ELCINA or IESA) for networking and insider tips.

India isn’t a perfect fit for everyone, but if you want access to a giant market, lower overhead, and a growing high-tech workforce, there’s serious potential here. Just make sure you plan for a bit more red tape, and be ready for the fast pace and culture shift.