A significant factor driving this growth is the government’s PLI scheme, which incentivizes manufacturers to set up production units in India
India is on track to achieve $300 billion in electronics production by 2026, marking a significant milestone for the nation’s manufacturing sector, driven by initiatives like ‘Make in India’ and the Production Linked Incentive (PLI) scheme. According to the Ministry of Electronics and IT, the country’s electronics industry has seen tremendous growth, particularly in mobile phone manufacturing, which is propelling India’s rise as a global leader in electronics production.
From 2014-15, when just 26% of mobile phones sold in India were locally produced, India has made an impressive leap. By December 2024, nearly 99.2% of mobile phones sold in the country will be manufactured locally. The number of mobile manufacturing units in India has surged from just two in 2014 to over 300 today. This transformation has led to a remarkable increase in mobile phone exports, rising from Rs 1,566 crore in 2014-15 to Rs 1.2 lakh crore in 2023-24 — a 77-fold increase.
A significant factor driving this growth is the government’s PLI scheme, which incentivizes manufacturers to set up production units in India. These efforts have led to an acceleration in the production of mobile phones, with over 325 to 330 million mobile phones manufactured annually in India. The manufacturing value of mobile phones has also surged from Rs 18,900 crore in FY14 to Rs 4,22,000 crore in FY24. The country is now the second-largest mobile phone producer globally.
The impact of these initiatives is evident in the electronics export sector. Electronics exports from India are set to exceed Rs 3 lakh crore for the first time in FY25, driven primarily by smartphones. The export of smartphones alone has surged to Rs 1.75 lakh crore, a 54% jump compared to the same period in the previous year. Apple has played a significant role in this export growth, with its iPhone supply chain contributing 43% of total electronics exports and 70% of smartphone exports. The government had set a target of $20 billion (Rs 1.68 lakh crore) in smartphone exports for FY25, which has already been surpassed.
In addition to mobile phones, India’s semiconductor ecosystem is gaining momentum, with five major projects amounting to an investment of Rs 1.52 lakh crore receiving government approval. This growth in the semiconductor sector further strengthens India’s position in the global electronics and semiconductor industries.
India’s focus on boosting electronics production is supported by strategic policy measures, including increased budget allocations under the PLI scheme. The government has raised the allocation for electronics from Rs 5,747 crore in FY24 to Rs 8,885 crore in FY25, signaling a strong commitment to fostering domestic manufacturing.
With the continued growth of the mobile phone manufacturing sector, India is not only meeting domestic demand but also establishing itself as a key player in the global electronics export market. The expansion of manufacturing units, a skilled workforce, and strong policy support are setting the stage for India to achieve its ambitious target of $300 billion in electronics production by 2026.
As the nation moves forward with its manufacturing agenda, India is poised to make an even bigger impact on the global electronics industry, with an expanded footprint in mobile phones, smart devices, and semiconductors. The success of the PLI scheme and the country’s growing infrastructure and innovation capabilities are key enablers of this transformative journey.
