India’s electronic production rises to $125 billion in 2024–25

India has transformed into a major electronics manufacturing hub, marking nearly a six-fold increase in production over the past decade from USD 21 billion in 2014–15 to USD 125 billion in 2024–25.

The sector has not only expanded its industrial base but also created 2.5 million jobs in the last 10 years. 

Strategic government initiatives and strong policy support have further boosted local manufacturing, expanded exports, and attracted significant global investment, the Indian government said in a press release.

India has become the world’s second-largest mobile phone manufacturer. Mobile phone production increased from USD 2 billion in 2014–15 to USD 60 billion in 2024–25. 

India has an ambitious vision of building a USD 500 billion domestic electronics manufacturing ecosystem by 2030–31. Supportive measures such as the Production Linked Incentive (PLI) scheme and improvements in ease of doing business have significantly boosted manufacturing and exports. 

India has attracted more than USD 4 billion FDI inflow in electronics manufacturing since FY2020-21.

The PLI scheme, with an outlay of about USD 22 billion, spans 14 key sectors including electronics and IT hardware. It encourages companies to boost production, adopt new technologies, and expand exports.

India has attracted more than USD 4 billion FDI Inflow in the field of electronics manufacturing since FY2020-21. Nearly 70% of this FDI is contributed by beneficiaries of the PLI scheme, the press release said.

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) offers a 25 percent financial incentive on capital expenditure for producing key electronic goods. It helps bridge critical supply chain gaps, encourages local production, and supports India’s transition from assembly-based manufacturing to high-value component manufacturing.

The Electronics Components Manufacturing Scheme (ECMS), approved by the Cabinet on 1st May 2025, with a fiscal outlay of ₹229 billion (about USD 2.5 billion), has received 249 applications. The anticipated investment commitment of ₹1153 billion (USD 13 billion) is nearly double the original target of ₹593 billion (USD 6.6 billion).

The scheme is expected to generate production worth ₹10347 billion (about USD 115 billion) over the next six years, which is 2.2 times the initial target of ₹4560 billion (USD 50 billion). It is projected to create 142,000 direct jobs, far exceeding the target of 91,600, along with many indirect jobs, the press release said.