PLI schemes drive India’s electronics boom as output crosses Rs 13 lakh crore

New Delhi: India’s electronics industry is no longer just assembling gadgets, it is assembling a global success story. Powered by a series of Production Linked Incentive (PLI) schemes and wider manufacturing reforms, the country has transformed itself from a major importer into one of the world’s fastest-growing electronics production hubs.

Fresh data tabled in the Lok Sabha by Jitin Prasada shows that India’s electronics production has surged nearly seven-fold over the past 12 years, rising from around Rs 1.9 lakh crore in 2014-15 to Rs 13.11 lakh crore in 2025-26. Electronics exports have grown even faster, climbing more than eleven-fold from Rs 38,000 crore to Rs 4.24 lakh crore during the same period.

The momentum has continued over the past year alone. Electronics production increased from Rs 11.32 lakh crore in 2024-25 to Rs 13.11 lakh crore in 2025-26, registering year-on-year growth of 15.8 per cent.

Mobile phones have emerged as the biggest success story of the government’s manufacturing push. Production has jumped from approximately Rs 18,000 crore in 2014-15 to Rs 6.27 lakh crore in 2025-26, while exports have skyrocketed from just Rs 1,500 crore to Rs 2.59 lakh crore, representing a 165-fold increase.

According to the government, smartphones, which did not feature among India’s top 100 export commodities in 2014, have now become the country’s single largest exported product, overtaking traditional export leaders such as petroleum products and gems and jewellery.

India now manufactures 99.2 per cent of the mobile phones used domestically and has become the world’s second-largest mobile phone manufacturer by volume. The country has also completed its transition from being a net importer of mobile phones to becoming a net exporter.

A major contributor to this growth has been the Production Linked Incentive Scheme for large-scale electronics manufacturing, launched in 2020. Against an initial five-year investment target of Rs 7,000 crore, companies have reported cumulative investments of Rs 20,587 crore by March 2026, nearly three times the original target.

During the same period, participating companies reported cumulative production worth Rs 11.62 lakh crore, comfortably exceeding the scheme’s target of Rs 8.13 lakh crore. Exports reached Rs 6.43 lakh crore, surpassing the original target by more than 30 per cent.

The government said the broader mobile manufacturing ecosystem has attracted nearly Rs 96,000 crore in investments and an independent evaluation found domestic value addition had increased to 23 per cent during 2023-24, indicating a gradual shift from assembly towards deeper local manufacturing.

The manufacturing push has also expanded beyond smartphones. The Production Linked Incentive Scheme 2.0 for IT Hardware, launched in 2023, has generated cumulative production worth Rs 24,385.89 crore, attracted investments of Rs 1,056.36 crore and created more than 5,200 direct jobs through the domestic production of laptops, tablets, servers and related hardware.

To strengthen local supply chains further, the government introduced the Electronics Component Manufacturing Scheme, aimed at encouraging domestic production of printed circuit boards, camera modules, passive components, sub-assemblies and manufacturing equipment.

So far, 75 applications covering 23 product categories have been approved under the scheme. These projects are expected to attract investments of Rs 61,671 crore, generate production worth Rs 4.51 lakh crore and create more than 65,000 direct jobs. The ministry also noted that over 85 micro, small and medium enterprises have been integrated into global electronics supply chains through various support schemes.

Semiconductors remain another strategic focus area. Under the Semicon India Programme, 12 projects worth a combined Rs 1.64 lakh crore have been approved, with three already commencing commercial production. Building on this, the Union Cabinet recently approved Semicon 2.0 with an outlay of Rs 1.28 lakh crore to accelerate chip design, fabrication, advanced packaging and ecosystem development.

The industry’s expansion has translated into substantial employment gains. According to the government, India’s electronics manufacturing ecosystem now supports around 25 lakh direct and indirect jobs. Mobile manufacturing alone accounts for nearly 12 lakh jobs across the value chain, while women represent almost 70 per cent of the workforce in several high-precision manufacturing segments, making the industry an increasingly important contributor to inclusive industrial growth.

Taken together, the latest figures suggest India’s electronics ambitions are moving beyond assembly lines towards a more comprehensive manufacturing ecosystem. With rising exports, deeper domestic value addition, growing semiconductor capacity and an expanding skilled workforce, the country’s electronics sector appears to be steadily climbing the global value chain while strengthening its position as a key manufacturing destination.