India Electronics Manufacturing Expands With Strategic Support
India’s electronics sector is experiencing historic growth, driven by a combination of targeted government policies, expanding domestic production and a rapid rise in exports that are reshaping the country’s industrial landscape. According to government data, electronics production has surged nearly six-fold over the last decade to around ₹11.3 lakh crore in fiscal year 2024–25 — a landmark shift for an industry once heavily reliant on imports.
At the heart of this expansion are policy initiatives such as the Production Linked Incentive (PLI) scheme and recent budget support for semiconductors and IT hardware, which are attracting global investment, catalysing new manufacturing capacity and improving supply chain resilience. The 2026–27 Union Budget set aside significant resources to expand India’s semiconductor ecosystem and high-tech data infrastructure, signalling long-term policy commitment.Export performance underscores the sector’s rising global relevance. Electronics exports crossed US$ 48 billion in 2025, reflecting a strong uptick in demand for Indian-made products abroad and supporting foreign exchange earnings. Growth has been propelled by mobile devices, consumer electronics and related components — segments where India has moved from assembly-led production to deeper participation in global value chains.
The structural transformation of the electronics ecosystem is visible in the rapid scaling of mobile manufacturing. From just a handful of units a decade ago, India now hosts more than 300 mobile production facilities, contributing disproportionately to output and export growth. This shift has helped India become one of the world’s largest mobile manufacturers and exporters, reinforcing its credentials as a global manufacturing hub.Policy incentives extend beyond finished goods. The Electronics Component Manufacturing Scheme (ECMS), launched in 2025, has approved numerous investment proposals and aims to build domestic capacity for critical parts such as printed circuit boards, camera modules and semiconductor packaging. These efforts address long-standing supply chain gaps and promote value addition inside India’s borders — a key component of technology sovereignty and industrial sustainability.
Urban and regional economies stand to benefit from this growth in several ways. Increased electronics production stimulates job creation across manufacturing, logistics and services, while exports support broader export-led growth strategies. Towns hosting electronics and semiconductor facilities are poised to see spill-over effects in infrastructure, skills development and micro-enterprise formation. The emphasis on semiconductors and advanced electronics aligns with India’s ambition to integrate more deeply into high-technology global chains.However, challenges remain. Despite remarkable gains, domestic component production still lags behind demand for high-value inputs, creating exposure to imports for certain technologies. Analysts argue that sustaining growth will require concerted efforts to deepen design and fabrication capabilities, strengthen research and development, and boost quality-linked exports that compete on innovation rather than cost alone.
Looking ahead, the electronics sector is tracking toward an ambitious $500 billion ecosystem by 2030, encompassing finished products, components and semiconductor manufacturing. Achieving this target will depend on continued policy support, strategic infrastructure investments and an inclusive approach that expands opportunities across regions and workforce segments.
