India’s photonics industry has formed the India Photonics Association (IPA) as demand for high-speed data transmission rises with the expansion of artificial intelligence, data centres and advanced telecom networks.
The newly established industry body brings together companies working in photonics and aims to strengthen collaboration between industry, government and other stakeholders. The development comes as India seeks to expand domestic manufacturing of photonics components under the second phase of the India Semiconductor Mission.
Industry estimates indicate that India’s direct photonics market is currently around $2.5 billion and could grow fourfold to $10 billion by 2031. The IPA currently has 65 members, including companies such as SFO Technologies, GX Quantum Photonics, Lightspeed Photonics and Tejas Networks.
AI Data Centres Drive Demand for Photonics
Photonics technology uses light to transmit and process information and is increasingly important for high-speed communications.
AI data centres require large volumes of high-speed connections both within their facilities and between data centres and external networks. As AI workloads become more demanding, the need for faster and more reliable optical connectivity is expected to increase.
Industry representatives said existing data-centre photonics connectors typically support speeds of around 10–40 gigabits per second, while AI-focused facilities are expected to require connectors capable of supporting 100–400 Gbps.
India’s broader data-centre expansion is also creating a favourable environment for this technology. Government data shows that the country’s installed data-centre capacity has expanded significantly as AI and cloud workloads increase.
IPA Pushes for a Stronger Domestic Ecosystem
The India Photonics Association is expected to focus on collaboration, innovation, indigenous manufacturing, talent development and global partnerships.
The industry is also looking toward silicon photonics, with the IPA's leadership indicating that one or two industry-led pilot projects could emerge in India. Such projects could help develop domestic capabilities in advanced optical technologies.
The formation of the association comes as policymakers seek to expand India's semiconductor and electronics manufacturing ecosystem. Greater domestic production of photonics components could potentially reduce dependence on imported technologies and strengthen India's position in global technology supply chains.
Companies Increase Investment in Photonics Manufacturing
Industry investment is already beginning to expand. GX Group has announced plans to start manufacturing at an advanced photonics facility later this year, with an investment of around ₹500 crore.
The company's first phase is expected to include production of optical transceiver SFPs, components that help convert electrical signals into optical signals and back again for high-speed data transmission.
For businesses entering or expanding in India's technology and electronics sectors, this emerging ecosystem could create opportunities across manufacturing, infrastructure, research and technology services. Companies operating in this space will also need strong financial controls and accurate records as investment and supply-chain activity grows. Professional bookkeeping services in india can support businesses in maintaining organised financial records while they scale.
India Looks to Capture a Larger Share of the Global Photonics Market
The formation of the IPA reflects the growing strategic importance of photonics alongside semiconductors, AI infrastructure and telecommunications.
With AI data centres demanding increasingly faster connections, industry participants believe India has an opportunity to develop domestic expertise and manufacturing capabilities rather than relying primarily on imported components.
If investment, research and policy support continue, photonics could become an important part of India's broader technology manufacturing ecosystem over the coming years.