From “Make in India” to “Innovate in India”: Policies Fueling the Connected Devices Sector

By Vivek Gupta Director at Panembra Tech

India’s industrial narrative is shifting. While the “Make in India” initiative established the country as a manufacturing hub, the current challenge is to move beyond assembly lines toward innovation-driven growth. Today, connected devices from smart cards and IoT sensors to AI-powered systems are driving digital economies, enabling secure transactions, and reshaping citizen services.

Realizing the potential of this sector requires more than manufacturing capability; it demands a robust ecosystem where policy support, technology adoption, and entrepreneurial innovation work hand in hand.

Policy as a Growth Engine

Government policies have been pivotal in shaping the connected devices landscape. Programs such as Production-Linked Incentives (PLI), R&D tax benefits, and startup incubator support have made domestic manufacturing more competitive. Regulatory clarity around data privacy, digital payments, and telecommunications has further strengthened investor confidence.

Such policies do more than increase production; they encourage manufacturers to integrate advanced functionalities like AI, IoT, and secure communication protocols into devices. By offering incentives for innovation, India is fostering a culture where manufacturers are not just building hardware but creating intelligent solutions.

Innovation Beyond Assembly

The transition from “Make” to “Innovate” emphasizes value over volume. Indian companies are increasingly focusing on research, design, and software integration. Smart devices now deliver multi-layered solutions, such as secure digital payments, identity verification, and seamless mobility services, transforming user experience.

This innovation also thrives on technology convergence. Semiconductor development, telecom infrastructure, and AI analytics intersect to produce smarter, safer, and more efficient devices. Policy frameworks encouraging collaboration between startups, academia, and established enterprises accelerate this progress, making India a hotbed for tech-driven solutions.

Building a Global-Ready Ecosystem

A successful connected devices sector requires a holistic ecosystem. Clusters of technology innovation are emerging, bringing together manufacturers, research institutes, and investors. Such clusters facilitate faster prototyping, skill development, and adherence to cybersecurity standards ensuring that India’s solutions are globally competitive.

Sustainability is also gaining prominence. Policies promoting eco-friendly manufacturing and resource-efficient practices are encouraging companies to embed responsibility alongside innovation. This alignment of policy, technology, and sustainability is essential for India to maintain a leading edge in connected devices.

The Road Ahead

Challenges remain, including infrastructure gaps, supply-chain bottlenecks, and the need for advanced R&D capabilities. Overcoming these hurdles will require continued policy evolution, investment in human capital, and adoption of digital-first approaches.

As India refines its strategy, the connected devices sector is positioned not just for domestic growth but for global leadership. By fostering innovation, supporting sustainable practices, and integrating emerging technologies, India can transition from a manufacturing hub to an innovation powerhouse.