Boosting India's Electronics Manufacturing Ecosystem

Summary of India's Electronics Manufacturing Ecosystem

Growth and Economic Impact

• Electronics Production: Increased from ₹1.9 lakh crore in 2014-15 to over ₹13.11 lakh crore in 2025-26 (7x growth).
• Exports: Rose from ₹38,000 crore to over ₹4.24 lakh crore during the same period (11x growth).
• Mobile Manufacturing:
  • Production surged from ₹18,000 crore to ₹6.27 lakh crore (33x growth).
  • Exports grew from ₹1,500 crore to ₹2.59 lakh crore (165x growth).
• Job Creation: Approximately 25 lakh jobs supported by the electronics manufacturing ecosystem, with 12 lakh jobs in mobile manufacturing. Notably, around 70% of the workforce in high-precision manufacturing sectors are women.

Government Initiatives and Policies

• Make in India and Atmanirbhar Bharat: Guided the development of a comprehensive electronics manufacturing ecosystem.

• Production-Linked Incentive (PLI) Schemes:

  • PLI for Large Scale Electronics Manufacturing (LSEM): Introduced in 2020 to boost domestic mobile phone production.
    • Investment target: ₹7,000 crore with actual investment at ₹20,587 crore (294%).
    • Production target: ₹8,12,550 crore with actual production at ₹11,61,581 crore (142%).
    • Export target: ₹4,87,530 crore with actual exports at ₹6,43,323 crore (132%).
  • PLI 2.0 for IT Hardware: Launched in 2023 to establish a robust domestic manufacturing ecosystem for IT hardware, generating ₹24,385.89 crore in cumulative production and 5,216 direct jobs.

• Electronics Component Manufacturing Scheme (ECMS): Aimed at strengthening the supply chain and attracting investment in critical components like PCBs and camera modules, with anticipated investments of ₹59,350 crore.

• Semiconductor Initiatives:

  • Semicon India Program: Approved 12 projects with a total investment of ₹1.64 lakh crore, with three projects already in commercial production.
  • Semicon 2.0: Approved on July 15, 2026, with a budget of ₹1,27,500 crore to enhance chip design and manufacturing capabilities.

Employment Statistics

• Current Employment: Electronics manufacturing supports approximately 25 lakh jobs, highlighting its role in industrial employment.
• Mobile Manufacturing: Contributes significantly to job creation, with a large proportion of the workforce being women.

International Standing

• Global Electronics Manufacturing Hub: India has evolved into a major electronics manufacturing center, with 99.2% of mobile phones used domestically being manufactured in India.
• Top Export Item: Smartphones have become India's top exported item, surpassing petroleum and gems, indicating a shift from being a net importer to a net exporter of mobile phones.

Future Prospects

• Continued growth in the electronics sector is anticipated, driven by government schemes and investments aimed at enhancing domestic production, export capabilities, and job creation across various segments of the electronics manufacturing ecosystem.

Key Data Points

• Electronics Production Growth: ₹1.9 lakh crore (2014-15) → ₹13.11 lakh crore (2025-26).
• Mobile Phone Production Growth: ₹18,000 crore → ₹6.27 lakh crore.
• Investment in PLI for LSEM: ₹20,587 crore (actual) vs. ₹7,000 crore (target).
• Direct Employment: 5,216 jobs created under IT Hardware PLI 2.0.

This summary encapsulates the significant developments in India's electronics manufacturing sector, reflecting the government's strategic initiatives, economic impacts, and the evolving landscape of employment and exports.