Doubling down on electronics, India’s value addition hits 70%, exports soar, and imports drop—set to reach 90% by FY27, making India a global manufacturing powerhouse.
India is stepping up in global electronics manufacturing, with value addition in the sector reaching around 70%, up from 30% a few years ago. This figure is expected to touch 90% by FY27, according to a report by Axis Capital.
The government’s focus on localisation, through policies like the Production Linked Incentive (PLI), the Phased Manufacturing Programme (PMP), and the SPECS scheme, is driving this transformation. Combined with a skilled workforce and improved infrastructure, these initiatives are making India a manufacturing hub.
Mobile phone exports have grown 77-fold over the past decade. Nearly 99% of phones sold in India are manufactured domestically, making India the second-largest producer globally.
On the other hand, import dependence is also falling. For instance, the share of imported complete air conditioners (CBUs) dropped from 35% in FY19 to just 5% in FY25. Key components such as compressors and aluminium coils are increasingly being produced locally.
In FY24, India imported 8.5 million RAC compressors. However, domestic production is expected to meet the entire demand within the next two to three years.
The demand for printed circuit board assemblies (PCBAs) has surged, supported by higher import duties. Mobile PCBA imports, valued at ₹300 billion in FY18, have nearly vanished by FY24.
Since 2016, India has reversed its trade imbalance in electronics. Local production now exceeds imports by around 24% as of FY24.
Electronics exports are growing at a CAGR of 26% from FY16 to FY25. With new policies and global companies looking beyond China, India is gaining prominence in the worldwide supply chain.
Lower corporate tax rates, simplified export processes, and rising domestic capacity are helping position India as a leading electronics manufacturing and export destination.
