India’s electronics manufacturing output has seen a significant increase, rising almost sixfold from Rs 1.9 lakh crore in FY15 to Rs 11.3 lakh crore in FY25. This growth was supported by government initiatives like the PLI Scheme and Make in India program. Despite this surge, the report by Infomerics Valuation and Ratings Limited highlighted that value capture remains limited due to heavy reliance on imported components and sub-assemblies.
The report emphasized the need for deeper localization to boost value addition, reduce import dependency, and enhance export competitiveness. India has ambitious goals to become a global electronics manufacturing hub, targeting $500 billion in electronics production and $180–200 billion in exports by 2030–31. To achieve these targets, the country must focus on enhancing component manufacturing, investing in R&D, improving logistics, nurturing skilled talent, and ensuring sustained policy support.
Mobile phone manufacturing has been a notable success story, expanding 28 times since FY15, with over 99% of domestic demand being met by local production. Recent policy decisions, such as approving semiconductor units in Odisha, Punjab, and Andhra Pradesh with significant investments and job creation, have been highlighted in the report. The India Semiconductor Mission has also attracted substantial investments across various segments of the semiconductor industry.
Dr. Manoranjan Sharma, Chief Economist at Infomerics Valuation and Ratings Ltd., noted India’s emergence as a global semiconductor design hub, with around 20% of the world’s semiconductor design workforce based in the country. The government’s initiatives aim to foster the growth of 50 fabless semiconductor companies and enhance semiconductor talent through specialized training programs and industry collaborations.
India is capitalizing on the global supply chain diversification trend, with a shift towards the China+1 strategy. The country recently surpassed China as the largest supplier of smartphones to the United States in Q2 FY26, underscoring its expanding role in global electronics manufacturing.
