Invest in Local Tech Development, Scale and Supply Chain Localization for True Self-Reliance: Munshi

India’s push to become a global powerhouse in electronics and display manufacturing isn’t just a bold ambition anymore, it’s a necessity.

With over 350 million mobile phones and around 12 to 15 million panel TVs being made annually, the numbers may impress, but scratch beneath the surface and a deeper challenge emerges.

In an interview with IGNITO, Sanjay Munshi, CEO, LCGC Resolute Group, lays it bare: India is great at assembling finished products, but when it comes to critical components like display panels, driver ICs, and advanced semiconductors, we’re still deeply import-dependent. The real value, technological depth and self-reliance, remains out of reach.

He talks about the gaps in our tech ecosystem, and why simply raising tariffs won’t do the trick. Instead, he makes a strong case for strategic global partnerships, long-term investments, and smart policy support like the PLI scheme, essential steps if India is to move beyond just “box building” and truly own the electronics value chain.

IGNITO: How do you assess the current state of display manufacturing in India? Are we moving towards self-sufficiency, or is there still a heavy reliance on imports?

Munshi: When we talk about self-sufficiency in display manufacturing, India still has a long road ahead. There’s impressive scale in mobile and panel TV manufacturing as India now produces around 350 to 400 million mobile phones and 12 to 15 million panel TVs annually.

However, the challenge lies in value addition. For most products, it remains under 20%. In televisions, it’s barely 10%, and for mobile phones, it’s about 20%. This low value addition means we’re still heavily reliant on imports for critical components.

Take display panels, driver ICs, and key semiconductors, these core components are almost entirely imported. We currently lack robust domestic capabilities in these areas, and much of our supply continues to come from China and other Southeast Asian countries.

So, while manufacturing volumes in India are growing, the focus now must shift to building local capabilities in key components. That’s essential if we truly want to move beyond assembly and achieve real self-reliance in electronics and display manufacturing.

IGNITO: What are the key challenges that Indian display manufacturers face in terms of technology, supply chain, and investment?

Munshi: Setting up a display fab is a massive undertaking as it typically requires an investment of more than a couple of billion dollars, which is a big hurdle. The challenge gets steeper with the fast-paced evolution of display technologies. While LCD still dominates, OLED and micro LED are quickly gaining ground.

Globally, the landscape has shifted. Japan, once a leader, now contributes meagrely to global display Supply chain. China, on the other hand, controls major chunk thanks to its scale of operation and strong manufacturing ecosystem.

In India, our current focus is mostly on assembly. We’re assembling displays, PCBs, casings, and doing packaging. But the core display tech and high-end electronics are still largely imported.

Our challenges are threefold. First, technology, we don’t yet have strong indigenous design expertise in display manufacturing. Second, scale and investment, lack the massive funding China has poured in over decades. And third, the supply chain, is still heavily import-dependent.

For true self-reliance, we must invest in local tech development, scale, and supply chain localization.

IGNITO: With emerging trends like OLED and MicroLED displays, where do you see India’s position in the global display ecosystem in the next five years?

Munshi: For nearly a decade, we’ve heard announcements about large display manufacturing investments in India, but very little has taken shape on the ground. We still don’t have a major operational display fab in the country.

The core challenge is the scale and complexity of this sector. Display manufacturing isn’t just about setting up a plant, it’s a highly capital-intensive business that demands billions in investment, advanced technology, cleanroom infrastructure, precision engineering, and most important operational scale.

China succeeded here because it already had a massive base for fully built electronics, strong domestic demand, and export momentum. That scale justified investing in display fabs and helped them build deep technical expertise.

India is progressing but slowly. While exports of iPhones and other products have begun, scale is still limited. Without strong policy support, global partnerships, and long-term investments, India’s role in core display tech may remain confined to assembly and partial integration.

IGNITO: Resolute Group has been a key player in electronics manufacturing—how do you view the concept of reverse integration in display and TV manufacturing?

Munshi: If by reverse integration you mean backward integration, then yes, that’s something Resolute Group has been actively focused on. In electronics and TV manufacturing, backward integration means building in-house capabilities for components and processes that are usually outsourced.

We began with final product assembly, but over time, we’ve moved steadily upstream in the value chain. For instance, we’ve made significant investments in PCBA and set up advanced SMT (Surface Mount Technology) lines, allowing us to manufacture core electronic assemblies ourselves.

We’ve also expanded into injection moulding to produce plastic components in-house. Additionally, we now manage our own EPS (Thermocol) packaging, a crucial part of protecting finished goods during transit.

This integration has brought us greater control over quality, timelines, and costs. Competitive industry like electronics assembly, where margins are tight and reliability matters, backward integration is more than a cost-saving strategy, it’s a growth enabler. It strengthens our supply chain and gives us the flexibility to scale quickly as demand rises.

IGNITO: What steps should Indian manufacturers take to strengthen backward integration in TV and display panel production?

Munshi: If India truly wants to become a serious player in electronics manufacturing, we need to build it step by step. Just making complex components like display panels or ICs without a solid foundation won’t work, this ecosystem doesn’t function that way.

Currently, most of our activity is EMS-based, meaning we assemble products but don’t own the designs. So, our priority must be developing design capabilities which would give us a better control on supply chain and flexibility to pursue meaningfully backward integration.

High-end backward integration, like making semiconductors or displays, requires complex, capital-intensive operations, mature supply chains, and reliable utilities. For example, fabs need access to high-purity silicon, specialty gases, and consistent water and power supply. These are still costly and inconsistent in India.

So, our real focus must be on building the full ecosystem, raw materials, infrastructure, talent, and design. With this gradual, strategic approach, success will follow.

IGNITO: Are there specific policy interventions or government incentives that could accelerate India’s journey towards full-fledged display manufacturing, reducing import dependency?

Munshi: The government has taken some strong steps, especially through the PLI schemes, and it’s encouraging to see that incentives are now being linked to the level of backward integration. That’s a smart shift as it pushes manufacturers to go beyond assembly and invest deeper into the value chain.

But the key question is: how deep is that integration? For instance, if a company does injection moulding but still imports the resin, how much value is truly being added in India?

In semiconductors, we now have semiconductor fab and chip packaging initiatives underway. However, even PCBs and passive components are largely imported. So, to reduce import dependency, we also need to focus on basic components like PCBs, passive components, interface modules etc apart from focussing on semi-conductor.

Also, design and IP are critical. Countries like the U.S. maintain control not through manufacturing alone, but by owning the design. For India too, building strong R&D and design capability is imperative for real, long-term self-reliance.

IGNITO: Across the world, we’ve seen how tariff wars such as those between the U.S. and China have disrupted supply chains. How do you see tariffs impacting global electronics trade, particularly for display and TV manufacturing?

Munshi: When we talk specifically about TV manufacturing, China still dominates the global supply chain. From components and raw materials to advanced technology, China’s ecosystem is deeply integrated and highly efficient. You can impose tariffs or try to diversify sourcing, but replacing that scale and depth isn’t easy.

From my experience, I’ve seen that many global manufacturing units be it in Mexico, Poland, or even India largely function as assembly hubs, while the critical components continue to come from China, South Korea, or Taiwan.

Tariffs may encourage companies to look beyond China, and some of that shift is happening. But with China’s entrenched control over everything from semiconductors, PCB’s to rare earth materials and manufacturing machinery, building alternatives takes years of sustained investment.

In short, tariffs alone can’t rebuild ecosystems. We need a strategic, long-term plan to create a viable supply chain outside China. Quick fixes won’t work.

IGNITO: Have high import duties on components in India slowed down growth in the electronics manufacturing ecosystem, or have they encouraged local production?

Munshi: I’d actually reframe the question. Rather than asking if high duties are hurting us, we should ask, are low duties helping us? The answer is yes, but only to an extent.

Lower import duties have supported box building, final product assembly, which has grown in India. But when it comes to real value addition, the story changes. If core components continue to be imported and there’s no parallel push to manufacture them locally, the ecosystem stays shallow. We may be assembling products, but we’re not building a resilient, self-sustaining industry.

Now, raising import duties on components is tricky. Go too high, and manufacturers might find it unviable to assemble even the final products here, risking the little progress we’ve made.

That’s why the focus shouldn’t be just on tariffs, but on strong, targeted incentives for domestic component manufacturing. In that sense, schemes like PLI are a step in the right direction.

To truly become a manufacturing hub, India must move from just assembling to owning the full value supply chain and that requires long-term economic viability, not just protectionist policies.

IGNITO: What lessons can India learn from countries like China, South Korea, and Vietnam, which have successfully built strong display manufacturing industries despite global trade complexities?

Munshi: Vietnam is often cited in electronics manufacturing, but when it comes to display manufacturing, it hasn’t built an independent ecosystem. Most of what exists is contract manufacturing.

The true leaders in this space remain China, South Korea, Taiwan, and historically, Japan. China, in particular, dominates the market with over two-thirds of global display production, far outpacing others.

For India, the ideal learning window was likely two decades ago, when the industry was still evolving. That early-mover advantage is gone. But we can still move forward not by reinventing the wheel, but by forming strategic joint ventures. Indigenous technology is lacking, so partnerships with global display leaders are the most practical path.

Also, India must look beyond just TVs. The global TV market is stagnating. A viable display fab must cater to mobiles, tablets, laptops, and smart devices, where demand is still rising.

With 5–6% of global TV demand, India has a strong base. But long-term success will depend on diversification, partnerships, and ecosystem depth.