Electronics manufacturing surges over 11 years, India becomes World’s second-largest mobile manufacturer

India’s electronics manufacturing sector has witnessed a sharp expansion over the last 11 years, with production and exports registering multi-fold growth, positioning the country as the second-largest mobile phone manufacturer globally.

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

According to government data, the production value of electronic goods rose nearly six times from about ₹1.9 lakh crore in 2014–15 to ₹11.3 lakh crore in 2024–25. During the same period, electronics exports increased over eight times from around ₹0.38 lakh crore to ₹3.3 lakh crore.

The most significant growth has been recorded in mobile phone manufacturing. Mobile phone production surged from approximately ₹0.18 lakh crore in 2014–15 to ₹5.5 lakh crore in 2024–25, marking a 28-fold increase. Mobile phone exports expanded even faster, rising from about ₹0.01 lakh crore to nearly ₹2 lakh crore, a 127-fold jump. India has now become a net exporter of mobile phones, reversing its status as an importer in 2014.

Prasada attributed much 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 during 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 manufacturing, the government launched PLI 2.0 for IT Hardware in 2023, covering laptops, tablets, servers and related products. Till December 2025, the scheme has led to cumulative production of ₹16,531 crore, investments of ₹856.64 crore, and 4,776 direct jobs.

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

To reduce import dependence and generate employment, the government has implemented several complementary initiatives over the past decade. These include 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 support has come through public procurement norms favouring domestically manufactured products, tariff rationalisation and customs duty exemptions on capital goods, and the allowance of 100 per cent foreign direct investment (FDI) in electronics manufacturing under applicable regulations.

Prasada said these measures have helped establish India as a trusted global manufacturing hub and strengthened its role in international electronics supply chains.

RELATED ARTICLES

39 mins ago | FII

Foreign institutional investors’ holdings in India grew 3.6 times to $783 billion since 2012

The decline in foreign institutional investor (FII) ownership of Indian equities to a 17-year low of 15.1 per cent should not be viewed in isolation, as the absolute value of FII holdings has increased 3.6 times to around $783 billion since 2012, a...

2 hours ago | Asia stocks

Shares seesaw in Asia as earnings loom, oil skids

Stock markets got off to an erratic start on Monday as earnings season loomed, while oil slipped amid confusion over whether Russia would, or could, increase energy exports. While the conflict in the Gulf continued with strikes on shipping and airpo...

2 hours ago | Benchmark indices Sensex and Nifty

Stock markets open higher amid easing oil prices

Benchmark indices Sensex and Nifty climbed in early trade on Monday, extending their previous session's sharp rally, amid easing oil prices. The 30-share BSE Sensex rallied 178 points to 72,627.86 in early trade. The 50-share NSE Nifty climbed 76.20...