Despite capturing only 4% of the global electronics market, the Economic Survey 2024-25 remains optimistic, with domestic production soaring at 17.5% CAGR. But R&D still needs a boost.
India’s electronics market accounts for only 4 per cent of the global market share, highlighted the Economic Survey 2024-25, which was presented on Friday, 31 January 2025, right before the Union Budget. However, despite this meagre percentage, the survey noted that India’s electronics sector has experienced substantial growth in domestic production, exports, and imports over the past decade. Domestic electronic goods production increased dramatically from ₹1.90 trillion in FY15 to ₹9.52 trillion in FY24, reflecting a compound annual growth rate (CAGR) of 17.5%.

Besides, there has been a significant reduction in smartphone imports, with 99% of smartphones manufactured in India. In FY24 alone, India produced around 330 million mobile phones, with over 75% of them being 5G-enabled.
“The key drivers of growth have been the large domestic market, the availability of skilled talent, and low-cost labour,” the survey mentioned. It also highlighted gaps that need to be addressed, mentioning that the industry focuses predominantly on assembly while making limited progress in design and component manufacturing.
Furthermore, initiatives like Make in India and Digital India were applauded, which combined with enhanced infrastructure and government incentives, have bolstered domestic manufacturing and attracted foreign investments.
The Production-Linked Incentive (PLI) Scheme got a special mention, introduced in 14 sectors and instrumental in advancing domestic manufacturing.
With inputs from NITI Aayog, the survey cited PLI scheme’s “evident” success in mobile phone imports, which accounted for 78 per cent of the market value in FY15, fell to just 4 per cent by FY23. In terms of volume, imports constituted only 0.8 per cent in FY23. Mobile phone exports also saw a dramatic rise, reaching ₹887.26 billion in FY23, up from zero in FY16.
Similarly in the white goods sector, the PLI scheme aims to enhance domestic value addition from 15-20 per cent to 75-80 per cent. It has helped create a robust value chain for components such as compressors and heat exchangers, reducing the import dependency of products like air conditioners.
The PLI scheme has also encouraged the growth of local component manufacturing and supported MSMEs, furthering collaboration across the electronics supply chain.
Amid budget expectations, the electronics industry has called for increased government focus on research and development (R&D). The Economic Survey 2024-25 highlighted a significant gap in R&D investment, with India’s gross expenditure on R&D (GERD) at just 0.64% of GDP—far behind global leaders. R&D efforts are currently concentrated in sectors like pharmaceuticals, IT, and defence.
The survey also noted the growth of India’s intellectual property ecosystem, with patent filings more than doubling since FY15 and a 17-fold increase in patent grants. India’s rank in the Global Innovation Index has risen to 39th. However, the survey emphasised the need for stronger private-sector involvement and a focus on applied research.