India's electronics output surges sixfold in a decade over policy reforms: Report
New Delhi, July 15
India's electronics manufacturing output rose nearly sixfold from Rs 1.9 lakh crore in FY15 to Rs 11.3 lakh crore in FY25, while exports climbed eightfold to about Rs 3.3 lakh crore, driven by government initiatives such as the PLI Scheme and the Make in India programme, a report said on Wednesday.
The report from Infomerics Valuation and Ratings Limited said that despite the huge surge in output value capture remains limited because components and sub‑assemblies are largely imported, constraining overall domestic value addition.
The next phase of growth will therefore depend on deeper localisation, which can increase value addition, reduce import dependence, and improve export competitiveness.
India aims to become a global electronics manufacturing powerhouse, targeting $500 billion in electronics production by 2030-31 and $180-200 billion in electronics exports by 2031, the report said.
"Achieving these goals will require deeper component manufacturing, stronger R&D, improved logistics, skilled talent and sustained policy support," the report warned.
Mobile phone manufacturing was the standout success, expanding 28 times since FY15 and mobile exports growing 127 times, with over 99 per cent of domestic demand now met by local production.
The report highlighted recent policy moves, such as approval of semiconductor units in Odisha, Punjab and Andhra Pradesh with Rs 4,600 crore of investment and 2,000 jobs.
India Semiconductor Mission has secured over Rs 1.60 lakh crore of approved investments across fabrication, packaging, testing and chip design.
Dr. Manoranjan Sharma, Chief Economist, Infomerics Valuation and Ratings Ltd. said India has established itself as a global semiconductor design hub, accounting for nearly 20 per cent of the world's semiconductor design workforce.
"Government initiatives aim to develop 50 fabless semiconductor companies while expanding semiconductor talent through specialised training programmes and industry partnerships," Sharma added.
India is increasingly benefiting from global supply chain diversification or China+1 strategy. The country became the largest supplier of smartphones to the United States in Q2 FY26, overtaking China, highlighting India's growing role in global electronics manufacturing.
— IANS
Reader Comments
Good to see government schemes working. But I'm concerned about jobs – 2,000 jobs from that Rs 4,600 crore investment seems low. We need more focus on labour-intensive assembly work before we become a design hub.
Wow, 28 times growth in mobile manufacturing and 127 times in exports! That's incredible. I bought a Made in India smartphone last year and it's excellent quality. We've come a long way from importing everything. 👏
I follow Indian manufacturing closely from the US. The China+1 strategy is real. Many US firms now prefer India over Vietnam. Semiconductor units in smaller cities like Odisha and Punjab is smart – spreads development beyond metros.
Happy to see this progress but I wish we had more focus on making chips instead of just assembling phones. The semiconductor mission is good but we need to speed up. China's been doing this for decades.
The fact that 99% of mobile demand is met by local production is a massive achievement. Remember when we used to buy only Nokia or Samsung imports? Now we have local brands too. Kudos to all the engineers and workers behind this! 🙌
I work in electronics R&D and can
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