Electronics Sector Grows Thanks to FDI and Free Flow of Imports and Exports

Ř  Production Linked Incentive Schemes Strengthen India's Electronics Manufacturing Ecosystem, Boosting Domestic Production, Exports and Value Addition

Ř  Electronics Production Grows Seven-Fold to Over ₹13 Lakh Crore, Exports Increase Eleven-Fold to Over ₹4 Lakh Crore in the Last 12 Years

Ř  Electronics Manufacturing Ecosystem Supports Around 25 Lakh Jobs, with Mobile Manufacturing Employing Around 12 Lakh People and Women Constituting Nearly 70% of Workforce in High-Precision Manufacturing Segments

·         Strong growth in electronics manufacturing: Driven by the Make in India and Atmanirbhar Bharat initiatives, India's electronics manufacturing ecosystem has expanded significantly over the past 12 years.

Key Achievements (2014-15 to 2025-26)

·         Electronics production increased 7 times, from ₹1.9 lakh crore to ₹13.11 lakh crore.

·         Electronics exports increased 11 times, from ₹38,000 crore to ₹4.24 lakh crore.

·         Mobile phone production rose 33 times, from ₹18,000 crore to ₹6.27 lakh crore.

·         Mobile phone exports surged 165 times, from ₹1,500 crore to ₹2.59 lakh crore.

·         Electronics production grew 15.8% year-on-year in FY 2025-26.

Major Government Initiatives

The growth has been supported through:

·         PLI Scheme for Large Scale Electronics Manufacturing (LSEM).

·         PLI Scheme 2.0 for IT Hardware.

·         Electronics Component Manufacturing Scheme (ECMS).

·         Semicon India Programme and Semicon 2.0.

·         Modified Electronics Manufacturing Clusters (EMC 2.0).

·         SPECS (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors).

·         Public Procurement (Preference to Make in India) Order.

·         100% Foreign Direct Investment (FDI) in electronics manufacturing.

PLI Scheme for Large Scale Electronics Manufacturing (LSEM)

·         Launched in 2020 to promote domestic mobile phone manufacturing.

·         Performance (up to March 2026):

o    Investment: ₹20,587 crore (294% of target).

o    Production: ₹11.62 lakh crore (142% of target).

o    Exports: ₹6.43 lakh crore (132% of target).

·         The scheme has catalysed approximately ₹96,000 crore (US$14 billion) of investment in the mobile manufacturing ecosystem.

·         Domestic Value Addition (DVA) increased to 23% in FY 2023-24.

India's Mobile Manufacturing Success

·         99.2% of mobile phones sold in India are now manufactured domestically.

·         India has become the world's second-largest mobile phone manufacturer by volume.

·         The country has transformed from a net importer to a net exporter of mobile phones.

·         Smartphones have become India's largest individual export commodity, surpassing petroleum and gems & jewellery.

PLI Scheme 2.0 for IT Hardware

·         Launched in 2023 to boost manufacturing of laptops, tablets, servers and related products.

·         Achievements so far:

o    Production: ₹24,385.89 crore.

o    Investment: ₹1,056.36 crore.

o    Direct employment: 5,216 jobs.

Electronics Component Manufacturing Scheme (ECMS)

·         Promotes manufacturing of:

o    Printed Circuit Boards (PCBs).

o    Passive and electro-mechanical components.

o    Camera modules.

o    Optical transceivers.

o    Capital equipment.

·         75 applications covering 23 product categories have been approved.

·         Expected outcomes:

o    Investment: ₹61,671 crore.

o    Production: ₹4.51 lakh crore.

o    Direct employment: 65,040 jobs.

Semicon India & Semicon 2.0

·         12 semiconductor projects approved under the Semicon India Programme with a total committed investment of ₹1.64 lakh crore.

·         Three projects have already commenced commercial production.

·         Semicon 2.0, approved on 15 July 2026, has an outlay of ₹1,27,500 crore to:

o    Expand semiconductor fabrication (fabs).

o    Promote chip design.

o    Support advanced packaging.

o    Develop semiconductor materials, gases and manufacturing equipment.

Support for MSMEs

·         More than 85 MSMEs have been supported under MeitY schemes.

·         MSMEs are increasingly integrated into global electronics supply chains and value chains.

Employment Generation

·         India's electronics manufacturing ecosystem currently supports around 25 lakh jobs (direct and indirect).

·         The mobile manufacturing sector alone employs about 12 lakh people.

·         Women constitute nearly 70% of the workforce in several high-precision mobile manufacturing segments, promoting gender-inclusive industrial growth.

State-wise Participation

·         PLI-LSEM: 32 approved applicants across 12 States/UTs, with the highest numbers in Maharashtra (7), Karnataka (6), and Uttar Pradesh (6).

·         PLI 2.0 for IT Hardware: 27 approved applicants across 13 States/UTs, led by Tamil Nadu (6) and Uttar Pradesh (6).

Key Takeaway

The Government's PLI and semiconductor initiatives have transformed India into a rapidly growing global electronics manufacturing hub, significantly increasing production, exports, domestic value addition, employment, and investment while strengthening the country's position in global supply chains and advancing the goals of Make in India and Atmanirbhar Bharat.

 

[ABS News Service/30.07.2026]

Driven by Hon’ble Prime Minister’s vision of Make in India and Atmanirbhar Bharat, Government of India has taken several policy initiatives to develop a complete ecosystem of electronics manufacturing.

The Government adopted a well thought out strategy to develop India’s electronic manufacturing ecosystem - beginning with the manufacturing of finished products, followed by sub-assemblies, components, and eventually machinery and tools. At the same time, the Government focused on creating the necessary infrastructure to support electronics manufacturing.

As a result of these initiatives, India has emerged as a global electronics manufacturing hub. Electronic manufacture in India has expanded significantly in the last 12 years, which can be seen from the following statistics:

#

2014-15

2025-26

Remarks

Production of electronics goods (₹)

₹1.9 Lakh Cr

₹13.11 Lakh Cr

Increased 7 times

Export of electronics goods (₹)

₹38 thousand Cr

₹4.24 Lakh Cr

Increased 11 times

Production of mobile phones (₹)

₹18 thousand Cr

₹6.27 Lakh Cr

Increased 33 times

Export of mobile phones (₹)

₹15 hundred Cr

₹2.59 Lakh Cr

Increased 165 times

The electronics production has increased from Rs. 11.32 lakh crores in FY 2024-25 to Rs. 13.11 Lakh crores in FY 2025-26 growing at a year-on-year growth rate of 15.8% in the last one year.

The growth in electronics manufacturing has been possible due to various measures taken by the Government in the last 12 years to promote domestic production, exports and value addition of electronic goods including mobile phones, IT Hardware and electronic components. Some of the major initiatives include:

·         PLI Scheme for Large Scale Electronics Manufacturing

·         PLI Scheme 2.0 for IT Hardware

·         Electronics Component Manufacturing Scheme (ECMS)

·         Semicon India Programme

·         Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme

·         Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

·         Modified Programme for Development of Semiconductors and Display Manufacturing    Ecosystem in India.

·         Public Procurement (Preference to Make in India) Order to promote using made in India goods.

·         Allowing 100% FDI in the sector

Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (LSEM)

The Government of India launched the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (LSEM) in 2020 to boost domestic manufacturing of mobile phones in the country.

Performance under PLI Scheme for LSEM (till March, 2026) is as follows:

 

Category

Target for 5 Years

Actual Reported till March 2026 (Cumulative)

Investment (Rs. Cr)

7,000

20,587

(294%)

Production (Rs. Cr)

8,12,550

11,61,581

(142%)

Exports (Rs. Cr)

4,87,530

6,43,323

(132%)

·         Smartphones, which did not feature in top 100 exported commodities in 2014 have now emerged as India’s top exported individual commodity in FY 2025-26 by surpassing petroleum, gems and jewellery.

·         India has now reached a point where 99.2% of the mobile phones being used in India are made in India.

·         India today is the second largest mobile manufacturer in volume terms.

·         The country has transitioned from being a net importer of mobile phones in 2014 to becoming a net exporter.

·         PLI-LSEM has catalysed investments of approximately Rs. 96,000 crore (around USD 14 billion) in the mobile manufacturing ecosystem across the country.

·         The external evaluation study of the PLI Scheme for LSEM reported that, alongside the significant increase in production and exports, domestic value addition (DVA) increased to 23% in FY 2023–24.

The details of state-wise approved applicants under the PLI Scheme for LSEM are placed at Annexure-I.

PLI Scheme 2.0 for IT Hardware

The Government of India has also launched PLI Scheme 2.0 for IT Hardware in 2023 to create a robust domestic manufacturing ecosystem for IT hardware (laptops, tablets, servers, etc.), attract large investments, reduce import reliance, and make India a trusted global supply chain hub. As on date, the Schemes have led to a total cumulative production of Rs. 24,385.89 crore, total cumulative investment of Rs. 1056.36 crore and total cumulative employment of 5,216 (direct jobs).

The details of state-wise approved applicants under PLI Scheme 2.0 for IT Hardware are placed at Annexure-II.

To further strengthen the domestic electronics manufacturing ecosystem and enhance domestic value addition, the Government has taken the following initiatives:

Electronics Component Manufacturing Scheme (ECMS)

The Government launched ECMS to further deepen the supply chain ecosystem and develop a robust electronics component ecosystem in the country.

It aims to attract investments across key components such as Printed Circuit Boards (PCBs), passive components, electro-mechanical components, sub-assemblies, camera modules, optical transceivers, and capital goods required for electronics manufacturing.

The scheme envisaged an investment of Rs 59,350 crore from the domestic/global manufacturers in India and direct employment of 91,600 during the scheme tenure.

As on date, a total 75 applications for 23 products have been approved under ECMS. These approved units are expected to attract investments of Rs 61,671 crore, generate projected production of Rs 4.51 lakh crore, and create 65,040 direct employment opportunities.

Government schemes have led to developments of many Micro, Small and Medium Enterprises (MSMEs) which have got integrated into the supply chain of global value chains. MSMEs play a critical role as supply chain partners of these global value chains and also by supporting them in various ancillary activities of electronic manufacture. So far more than 85 MSMEs have been supported under various schemes of MeitY.

Semicon 2.0

Further, to improve domestic value addition and as well as larger ecosystem development in semiconductor technologies which form a substantial part of the bill of material of any electronic product, the Government had launched the Semicon India Programme. So far 12 projects have been approved under this programme for a total committed investment of Rs 1.64 lakh crores. Out of these 3 projects have already started commercial production. Building on the success of this programme, the Union Cabinet approved Semicon 2.0 on 15th July 2026 with outlay of the program is Rs 1,27,500 Cr. Semicon 2.0 aims to accelerate design and development of Indian designed chips, expand semiconductor fabrication units (fabs), advanced packaging and also larger semiconductor ecosystem development by supporting materials and gases, equipment needed for semiconductor manufacturing.

Employment generation in the electronics ecosystem

As on date, India's electronics manufacturing sector supports ~25 lakh jobs (direct and indirect) reflecting the sector’s growing role in creating industrial employment opportunities. The Mobile manufacturing ecosystem alone currently employs around 12 lakh people (both direct and in-direct) across the value chain. The electronics manufacturing sector has emerged as an important sector for gender-inclusive industrial growth, with a few high-precision mobile phone manufacturing segments employing almost 70% of the total workforce as women.

Annexure-I

State wise approved applicants under PLI Scheme for LSEM

S. No.

State

No. of Applicants

1

Andhra Pradesh

2

2

Delhi

1

3

Gujarat

1

4

Haryana

1

5

Himachal Pradesh

1

6

Karnataka

6

7

Kerala

1

8

Maharashtra

7

9

Rajasthan

1

10

Tamil Nadu

4

11

Telangana

1

12

Uttar Pradesh

6

 

Total

32

Annexure-II

State wise approved applicants under PLI Scheme 2.0 for IT Hardware

 

S. No.

State

No. of Applicants

1

Andhra Pradesh

1

2

Delhi

1

3

Gujarat

1

4

Haryana

2

5

Karnataka

2

6

Kerala

1

7

Madhya Pradesh

1

8

Maharashtra

3

9

Pondicherry

1

10

Rajasthan

1

11

Tamil Nadu

6

12

Telangana

1

13

Uttar Pradesh

6

 

Total

27

This information was submitted by Union Minister of State for Electronics and Information Technology Jitin Prasada in Lok Sabha on 29.07.2026.