LG Electronics Expands Manufacturing in India, Shifts Global Production
LG Electronics is shifting key capital goods production to India, investing ₹1,000 crore in R&D, and driving a major manufacturing transformation.
TheInterviewTimes.com | New Delhi | November5, 2025 — In a decisive move reflecting its long-term commitment to India’s growing industrial base, LG Electronics is shifting the production of major capital goods—vital machinery used in electronics, display, and high-tech manufacturing—from facilities in Korea, China, and Vietnam to India. The strategic shift highlights India’s emergence as a preferred global manufacturing hub, powered by competitive labor, government incentives, and a rapidly expanding domestic market.
The move by LG Electronics is a cornerstone of its global diversification strategy, aimed at reducing overreliance on East Asian manufacturing centers and aligning with India’s “Make in India” and “Atmanirbhar Bharat” initiatives. The company is exploring partnerships with Indian manufacturers to accelerate local production and strengthen its domestic value chain.
LG Electronics Powers Apple’s iPhone 17 Production in India
One of the most significant milestones of LG Electronics’ India expansion is its participation in Apple’s iPhone 17 manufacturing ecosystem. The company supplied automated manufacturing equipment to major smartphone assemblers—Foxconn, Tata Electronics, and Pegatron—operating in India.
This marks LG Electronics’ evolution from a component supplier through subsidiaries like LG Display and LG Innotek into a key provider of integrated production machinery. This not only enhances India’s position in global smartphone supply chains but also strengthens LG’s reputation as a leading innovator in industrial automation.
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₹1,000 Crore Investment in Noida R&D Hub
Further underlining its commitment to India, LG Electronics has announced a ₹1,000 crore investment to establish a global research and development center in Noida. The 27,129-square-meter facility in the Phase-II industrial area will focus on innovation, design, and next-generation electronics technologies.
The R&D hub is expected to generate over 500 high-skilled jobs, bolstering India’s technology talent ecosystem. According to company officials, the center will play a key role in developing smart appliances, AI-integrated devices, and next-gen semiconductor solutions.
LG Electronics’ India IPO Surges Over 50% on Debut
LG Electronics India further reinforced its momentum with a spectacular stock market debut in October 2025. The company’s shares surged over 50% on opening day, valuing its India unit at $13.07 billion—surpassing its South Korean parent’s market capitalization of around $10 billion.
The $1.3 billion IPO, one of the most subscribed billion-dollar offerings in two decades, underscored investor confidence in LG’s robust performance and India-focused strategy. Market research firms like Prabhudas Lilladher and Motilal Oswal have issued strong “Buy” calls, citing LG’s expansive distribution network, brand leadership, and growing foothold in high-margin product segments.
India’s Electronics Market Outlook and LG’s Role
Analysts forecast that India’s consumer electronics and appliance market will maintain a compound annual growth rate (CAGR) of 14% through 2029, driven by rising disposable incomes, digital adoption, and urban expansion.
As a leading player, LG Electronics is expected to benefit from these macroeconomic tailwinds. The company’s strategy—integrating manufacturing localization, financial strength, and R&D innovation—positions it at the heart of India’s manufacturing transformation.
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A New Era for LG Electronics in India
The ongoing shift of LG Electronics’ capital goods production to India signifies more than a business realignment—it marks a geostrategic transformation in global manufacturing. By leveraging India’s cost advantages, skilled workforce, and policy support, LG is establishing India as a cornerstone of its global supply chain.
From powering Apple’s production lines to launching world-class R&D infrastructure, LG Electronics is driving a new era of industrial capability and global competitiveness. This multi-pronged strategy not only redefines the company’s footprint in India but also reinforces the nation’s status as a rising high-tech manufacturing powerhouse.