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Electronics Manufacturing Boom Propels India to World’s Second-Largest Mobile Manufacturer

India’s electronics manufacturing sector has recorded sharp growth over the past 11 years, with production and exports registering multi-fold increases, positioning the country as the world’s second-largest mobile phone manufacturer, according to government data.

In a written reply to the Rajya Sabha on Friday, Union Minister of State for Electronics and Information Technology Jitin Prasada said suggesting that the growth has been driven by the government’s Make in India and Atmanirbhar Bharat initiatives, supported by targeted policy reforms and incentive schemes aimed at building a comprehensive domestic electronics manufacturing ecosystem.

As per official figures, the production value of electronic goods increased nearly six-fold from about ₹1.9 lakh crore in 2014–15 to ₹11.3 lakh crore in 2024–25. During the same period, electronics exports grew more than eight times, rising from approximately ₹0.38 lakh crore to ₹3.3 lakh crore.

The most significant expansion has been seen in mobile phone manufacturing. Mobile phone production surged from around ₹0.18 lakh crore in 2014–15 to ₹5.5 lakh crore in 2024–25, marking a 28-fold increase. Mobile phone exports grew even faster, jumping from about ₹0.01 lakh crore to nearly ₹2 lakh crore, a 127-fold rise. With this growth, India has transitioned from being a net importer of mobile phones in 2014 to a net exporter.

Prasada attributed a large part of this growth to the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (LSEM), launched in 2020 to boost domestic mobile phone production. Under the scheme, mobile phone output more than doubled from ₹2.14 lakh crore in FY 2019–20 to ₹5.5 lakh crore in FY 2024–25, while exports rose nearly eight times from ₹0.27 lakh crore to ₹2 lakh crore over the same period.

As of December 2025, the LSEM scheme has attracted ₹15,172 crore in investment and generated 1,71,448 additional jobs, the minister said.

To further strengthen domestic electronics manufacturing, the government introduced PLI 2.0 for IT Hardware in 2023, covering products such as laptops, tablets, servers, and related equipment. By December 2025, the scheme had resulted in cumulative production of ₹16,531 crore, investments of ₹856.64 crore, and the creation of 4,776 direct jobs.

Year-wise data showed cumulative production under various PLI schemes rising from ₹4.95 lakh crore in FY 2023–24 to ₹10.39 lakh crore by December 2025, indicating steady expansion across electronics segments.

To reduce import dependence and generate employment, the government has also implemented complementary initiatives, including the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Electronics Manufacturing Clusters (EMC and EMC 2.0), and the Semicon India Programme.

Additional policy measures include public procurement norms favouring domestically manufactured products, tariff rationalisation, customs duty exemptions on capital goods, and the allowance of 100 per cent foreign direct investment (FDI) in electronics manufacturing under applicable regulations.

According to Prasada, these initiatives have helped establish India as a trusted global manufacturing hub and strengthened its role in international electronics supply chains.

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