India eyes $300 billion electronics goal by 2026

New Delhi

India is on track to achieve $300 billion in electronics production by 2026, driven by the ‘Make in India’ initiative and the production-linked incentive (PLI) scheme, the government announced Wednesday.

The country, now the world’s second-largest mobile phone manufacturer, has seen local production surge. In 2014-15, only 26% of mobile phones sold in India were made domestically, but this figure reached 99.2% by December 2024. India’s mobile manufacturing units have grown from just two in 2014 to over 300 today. Mobile phone exports skyrocketed from ₹1,566 crore in 2014-15 to ₹1.2 lakh crore in 2023-24, marking a 77-fold increase.

The semiconductor sector has also gained momentum, with five major projects approved, totaling investments of ₹1.52 lakh crore. The Ministry of Electronics and IT stated that strong policies and a skilled workforce are driving India’s rise as a global electronics hub.

The manufacturing value of mobile phones has surged from ₹18,900 crore in FY14 to ₹4,22,000 crore in FY24. India now produces over 325 million mobile phones annually, with nearly a billion phones in use.

Electronics exports are expected to surpass ₹3 lakh crore in FY25, fueled by smartphones. Between April 2024 and February 2025, exports grew 35% to ₹2.87 lakh crore from ₹2.11 lakh crore in the same period of FY24. Smartphones alone contributed ₹1.75 lakh crore, a 54% jump from last year.

To sustain growth, the government has increased PLI allocations from ₹5,747 crore in FY25 to ₹8,885 crore in FY26, further strengthening domestic manufacturing.