After becoming a data center hub, why India should now lead in external storage devices

Economic Times

5 hours ago

TIL Creatives Image created by AI for representation purpose
India's data center capacity is growing fast, with nearly $25 billion in investments expected by 2030. But, while the country is emerging as a storage hub for global data, it still depends heavily on imported external storage devices like SSDs, pen drives, and portable hard disks. Industry players believe this gap is a missed opportunity for domestic manufacturing.
India's growing role in global data infrastructure
India is now one of the fastest-growing data center markets in the world. According to a report, the country's data center capacity is projected to nearly double in the next few years. But, despite its strength in data infrastructure, India continues to import most of its external storage hardware. Devices like solid-state drives (SSDs), RAM modules, and USB flash drives are mainly produced in China, Taiwan, South Korea, and the US. While India has developed capabilities in assembly and packaging, it still lacks large-scale manufacturing of core components like NAND flash or DRAM chips.The government's Production-Linked Incentive (PLI) scheme for IT hardware offers some support, but most domestic brands rely on imported parts. This limits value addition in India and leaves the market vulnerable to supply chain disruptions.
Local brands try to fill the gap Some Indian companies like EVM, Zebronics have begun to build consumer storage devices tailored for local conditions and price sensitivity. While these companies primarily focus on branding, localisation, and distribution, they depend on global supply chains for key components such as NAND flash and controllers. Still, their ability to design for Indian conditions, from power fluctuations to rough handling, gives them an edge in local adoption.
'India has shown it can host the world's data, now it's time we also build the devices that store it. India need products for Indian conditions, from heat and dust to voltage fluctuations, which global brands often overlook," Kunal Hundia, Managing Director EVM, which was recently named the second-largest SSD brand in India, said. 'Our customers want reliability and speed at a price that makes sense. Local brands can meet that sweet spot, but we need a more robust supply ecosystem.' Kunal Hundia added.Global shift away from single-source supply chainsIndustry observers say India has a chance to grow in external storage manufacturing as companies around the world reduce dependence on Chinese supply chains. Global firms are looking to set up alternate manufacturing bases to improve resilience. India could benefit if it develops expertise in assembly, testing, and eventually in the design of storage hardware.'Global supply chains are shifting, and India should seize this moment to position itself as a serious alternative to China in storage tech. There's a clear opportunity for India to move up the value chain in storage manufacturing, but it needs long-term investment in core technologies like NAND and DRAM. Being closer to the market helps us respond faster to customer needs. But we need stronger R&D, controller-level innovation, and support for local component sourcing if India wants to become a true global player. With the right push in R&D and component manufacturing, India can become the next hub for global storage innovation, not just consumption," EVM's Kunal Hundia said."To achieve this, India needs investments in semiconductor fabs, better R&D capacity, and training for a skilled electronics workforce. Partnerships with global companies could help local players develop competitive products and raise export potential," he added.
Why it matters for India's tech economy External storage devices play a key role in consumer electronics, gaming, content creation, and small businesses. With more users storing videos, apps, and large files, demand for SSDs and high-speed drives is rising. India, with its large population of mobile and internet users, is a major market for such products.
If India builds capabilities in this segment, it could reduce its trade deficit in electronics, support the Make in India initiative, and offer cost-effective alternatives to global brands. More importantly, it can help Indian companies become part of the global hardware supply chain, not just as data center operators but also as device makers.
The road ahead Experts believe that India's growth in the data center industry shows it has the infrastructure and policy support to grow further in the digital economy. The next step is to extend this strength into storage device manufacturing. With a large domestic market, government incentives, and emerging local players, the time may be right for India to take the lead in external storage devices.