India’s electronics manufacturing sector has made significant strides, with domestic value addition now reaching 18%-20%, reflecting a growing localisation push. This development comes as a result of consistent government initiatives aimed at building a comprehensive electronics value chain, covering everything from finished goods and components to sub-modules, base materials, and capital equipment.
Over the past 11 years, production in India’s electronics sector has expanded nearly sixfold, increasing from US$ 24.74 billion in 2014-15 to approximately US$ 156.39 billion in 2024-25. Exports have surged even faster, nearly eight times, reaching US$ 43.01 billion during the same period. Mobile phone manufacturing, in particular, has seen a remarkable transformation, climbing from US$ 2.35 billion to US$ 71.02 billion, highlighting India’s emergence as a competitive electronics production hub.
The Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (LSEM) has played a pivotal role in this growth trajectory. As of February 2026, the scheme has exceeded its targets for investments, production, and exports. Total investments under PLI stand at US$ 2.28 billion, production at US$ 143.69 billion, and exports at US$ 80.99 billion. Additionally, the initiative has created over 185,000 direct jobs, with smartphones emerging as India’s leading exported electronic commodity in 2025.
This steady increase in domestic value addition signals a growing localisation of components and sub-assemblies, which will help reduce reliance on imports and strengthen India’s position as a global electronics and semiconductor manufacturing hub. The combined impact of robust production, PLI-driven investment, and rising exports underscores India’s potential to compete on the international stage while creating employment and building a self-reliant electronics ecosystem.
