New Delhi | Nov 5,2025 | SKY LINK TIMES
In a significant boost to India’s manufacturing ambitions, Korean multinational LG Electronics is reportedly set to shift production of some of its capital goods businesses to India. These goods are critical for building factories that produce electronic devices, display systems, and high-tech components.
The relocation, expected to take place from LG’s existing facilities in Korea, China, and Vietnam, is part of the company’s broader strategy to diversify its supply chain and expand its manufacturing base in India — a key growth market in the global electronics landscape.
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LG’s ‘Make in India’ Push Gains Momentum
According to reports, this move will strengthen India’s role as a key production hub within the company’s global ecosystem. The decision comes amid a worldwide push among manufacturers to reduce dependence on single-country production bases and leverage India’s expanding industrial infrastructure.
Industry experts say this transition aligns with the Indian government’s ‘Make in India’ initiative and could attract additional investments in electronics and component manufacturing.
₹1,000 Crore Investment in Noida R&D Centre
In a separate but complementary development,the holding company of the LG’s Group, has announced a ₹1,000 crore investment to establish a new global Research and Development (R&D) centre in Noida.
The upcoming facility will focus on innovation in electronics, technology design, and AI-based consumer solutions, and is expected to create around 500 new jobs. The R&D hub aims to make India a key innovation and design centre for LG’s global operations.
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Market Confidence and Investor Optimism
The announcement follows a wave of optimism for LG Electronics India, which recently made its stock market debut. On listing, shares surged over 50%, valuing the company at ₹1.15 lakh crore ($13.07 billion) — surpassing the market capitalisation of its South Korean parent (approx. ₹8,800 crore).
Brokerages such as Prabhudas Lilladher and Motilal Oswal have rated the stock a “Buy”, citing LG’s strong brand positioning, local manufacturing capabilities, and focus on high-margin product lines.
India’s Consumer Electronics Market on the Rise
With India’s consumer electronics and home appliances market projected to grow at a 14% CAGR from 2024 to 2029, LG’s twin strategy of local production expansion and R&D investment positions it to capture a major share of this booming sector.
Industry analysts believe LG’s latest moves reflect a long-term commitment to India — not just as a manufacturing destination, but as a global centre for design, research, and innovation.
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