Highlighting the extraordinary success of domestic electronics production, with 300+ factories, a 19% growth rate, MeitY looks ahead to its $300 billion ‘Make in India’ dream.
India has made rapid strides in electronics and semiconductor manufacturing, acknowledged the Ministry of Electronics and Information Technology (MeitY) recently. With a compound annual growth rate (CAGR) of 19.78%, the value of the country’s domestic electronics production touched ₹9.52 trillion in 2023-24, up from ₹5.54 trillion in 2020-21. This has made India the world’s second-largest mobile phone producer.
Earlier, the ICEA (Indian Cellular & Electronics Association) reported that smartphones are the second-most exported commodity. From April to December 2024, smartphone exports surged to $15.3 billion, a remarkable 46% increase compared to the same period last year.
According to MeitY 2014-15, just 26% of mobile phones sold in the country were locally made. By December 2024, this figure soared to 99.2%. Mobile phone manufacturing units have increased from only two in 2014 to over 300 by 2024.
Furthermore, in 2014-15, mobile phone exports stood at ₹15.66 billion. By 2023-24, this jumped to ₹1.2 trillion—a 77-fold increase. The manufacturing value of mobile phones rose from ₹189 billion in FY14 to ₹4.22 trillion in FY24. Over 325 to 330 million mobile phones are produced annually in India, with around a billion in use nationwide.
This was also highlighted in the Economic Survey right before the Union Budget 2025-26 was tabled on 1 February 2025.
On the other hand, India’s overall electronics production is projected to touch US$300 billion by 2026. Electronics exports are now surpassing traditional sectors like textiles, reflecting the industry’s growing prominence.
Regarding semiconductors, MeitY has predicted that India’s semiconductor market is expected to grow at a rate of 13% annually, reaching approximately ₹8.95 trillion (USD 103.4 billion) by 2030.
Looking back at a rather fruitful decade, the Ministry commended the government initiatives behind these milestones, especially Make in India, which was launched in 2014.
Several other targeted schemes propelled growth in the electronics sector as well.
“The Phased Manufacturing Programme (PMP), introduced in 2017, promotes local value addition in mobile phone components. Manufacturing has shifted from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) levels, deepening domestic capabilities,” said MeitY.
The Production Linked Incentive (PLI) Scheme, introduced in April 2020, also played a major role. It incentivises domestic manufacturing of mobile phones and key electronic components. Eligible companies receive 3%–6% on incremental sales over a five-year period.
By February 2025, the PLI scheme had attracted ₹109.05 billion in investments, led to almost ₹7.15 trillion in production, and boosted exports to ₹3.9 trillion. It also generated over 139,000 direct jobs. Moreover, the 2025–26 budget saw the allocation for electronics increase from ₹57.47 billion to ₹88.85 billion.
Meanwhile, the Semicon India Programme, launched in 2021 with a ₹760 billion outlay, aims to develop the entire semiconductor ecosystem—from fabrication to advanced packaging.
Five key semiconductor projects were approved by February 2024, totalling ₹1.52 trillion in investments. Major proposals include:
- Micron’s ₹220 billion facility
- Tata Electronics’ ₹915.26 billion fab with PSMC (Taiwan)
- Tata’s ₹271.2 billion OSAT facility
- CG Power’s ₹75.84 billion OSAT venture with Renesas (Japan) and STARS (Thailand)
- Kaynes Technology’s ₹33.07 billion OSAT unit in Gujarat
The India Semiconductor Mission, along with Tata Electronics and Tata Semiconductor Manufacturing, signed a Fiscal Support Agreement in March 2025 to establish the country’s first commercial semiconductor fab in Dholera, Gujarat.
In addition, the SPECS scheme offers 25% capital expenditure incentives for electronic components and semiconductor manufacturing, strengthening India’s supply chain.
Looking towards the US$ 300 billion target for 2026, MeitY expressed, “The remarkable growth from just two mobile manufacturing units in 2014 to over 300 today, demonstrates India’s commitment to self-reliance and innovation. Its robust policies and skilled workforce are paving the way for sustained growth, positioning the nation as a key player in the global electronics and semiconductor industry.”
