India is poised for a significant leap in its electronics manufacturing capabilities, thanks to the newly introduced Electronics Components Manufacturing Scheme. According to a recent report by Axis Capital, this new policy framework is expected to raise the country’s value addition in electronics production from the current 15-16% to an impressive 40-50%.
The Ministry of Electronics and Information Technology (MeitY) officially notified the scheme on April 8, marking a crucial move toward bolstering India’s role as a leading global electronics manufacturing hub. The report credits a series of strategic initiatives—including the Production Linked Incentive (PLI) scheme, Phased Manufacturing Program (PMP), and Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)—as key drivers behind the sector’s growth.
India has already established itself as the world’s second-largest mobile phone manufacturer, with nearly all (99%) mobile phones sold in the country now being produced domestically. From FY14 to FY24, mobile phone exports have surged by a staggering 77 times, underscoring the sector’s rapid evolution.
Historically dependent on electronics imports—especially prior to FY16—India has reversed the trend in recent years. With the momentum created by the ‘Make in India’ initiative, the country has significantly expanded its domestic electronics production. As of FY24, production outpaced imports by approximately 24%.
The report also highlights India’s emergence as a preferred destination for global electronics manufacturing, supported by a skilled workforce and improving infrastructure. Between FY16 and FY25, electronics exports have grown at a compound annual growth rate (CAGR) of around 26%, while overall production increased at a CAGR of 20% from FY15 to FY24. Mobile phone manufacturing has been a major growth engine, accounting for 44% of total electronics output and growing at a CAGR of 41% over the same period.
Looking ahead, the Indian government has set an ambitious export target of USD 500 billion by FY30. A key focus area will be the enhancement of components manufacturing, which is projected to contribute 30% of the total electronics production—up from just 9% in FY24.
With continued policy support and industry investment, India’s electronics manufacturing sector is on track to become a global powerhouse in the years to come.
