Electronics Sector Growth in India

The Economic Survey 25-26, presented on January 29, showcases the remarkable growth of India’s electronics sector, which has become a crucial element of the country’s industrial evolution and international trade strategy.

Transformative Shift in the Electronics Sector

The sector is undergoing a significant structural change. Transitioning from a domestic-centric industry, it has risen from being the seventh-largest export category in FY22 to the third-largest and fastest-growing sector by FY25.

This progress has remained strong; during the initial half of FY26, electronics exports hit $22.2 billion (around Rs 2.04 lakh crore), positioning the sector to potentially become India’s second-largest export category.

Mobile Manufacturing Achievement

A key contributor to this growth is the mobile manufacturing segment, which has experienced an extraordinary nearly 30-fold increase in production value. The sector’s worth escalated from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25.

This surge has significantly enhanced India’s global position. Previously a net importer, India is now the world’s second-largest manufacturer of mobile phones. The infrastructure for manufacturing has expanded from just two units in 2014 to over 300 units today.

Success Driven by PLI Schemes

The survey links this success to several strategic government initiatives aimed at tackling challenges like high capital demands and the requirement for advanced technology. Central to this success are the Production Linked Incentive (PLI) Schemes, which serve as a catalyst for both domestic and international manufacturers:

PLI for Large-Scale Electronics Manufacturing

Introduced in April 2020, this scheme has led to a total production of approximately Rs 9.34 lakh crore, exports amounting to Rs 5.12 lakh crore, and investments of Rs 13,759 crore by September 2025.

PLI Scheme 2.0 for IT Hardware

Initiated in May 2023, the PLI schemes for IT Hardware have achieved a cumulative output of Rs 14,462.7 crore and investments totalling Rs 892.47 crore by September 2025.

SPECS

Launched in April 2020, this initiative provides a 25% financial incentive on capital expenditure for the downstream value chain. By September 2025, 58 applications have been approved with a total proposed investment of Rs 22,081 crore.

Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem

Under a Rs 76,000 crore programme, the India Semiconductor Mission (ISM) has sanctioned key projects, such as Micron’s ATMP (Assembly, Testing, Marking and Packaging) facility, Tata Electronics’ Semiconductor Fab, one compound semiconductor fab, and various other packaging facilities, marking a significant stride towards high-tech self-sufficiency.

In addition, 24 projects for financial backing and 100 companies for design infrastructure support for chip design will be established by domestic start-ups and MSMEs.

By utilising these schemes, India has not only amplified its export figures but has also integrated more efficiently into Global Value Chains (GVCs).

The sector’s transformation from a self-reliant initiative to a strategically resilient industry is paving the way for India to become an essential hub for global electronics excellence.