India’s electronics manufacturing sector is witnessing a structural transformation, with domestic value addition rising to nearly 18 to 20 percent, signaling a decisive shift toward deeper localisation. According to the Ministry of Electronics and Information Technology, this progress reflects sustained policy interventions aimed at building a complete electronics value chain within the country.
The development comes at a crucial time when global supply chains are undergoing realignment and countries are focusing on reducing import dependence. India’s rapid rise in electronics production and exports, particularly in mobile phones, highlights its growing importance as a global manufacturing hub.
With initiatives such as the Production Linked Incentive scheme playing a central role, the country is not only expanding its manufacturing base but also strengthening its technological capabilities. The rise in domestic value addition is being viewed as a key indicator of long-term sustainability, competitiveness, and resilience in India’s electronics ecosystem.
India has achieved a significant milestone in electronics manufacturing, with domestic value addition now estimated between 18 and 20 percent. This marks a steady improvement in the country’s ability to produce not just finished goods but also key components and sub-assemblies locally.
Officials from the Ministry of Electronics and Information Technology attribute this growth to a comprehensive strategy that spans the entire manufacturing ecosystem. This includes investments in components, semiconductor-related inputs, base materials, and capital equipment.
Over the past decade, India’s electronics production has surged dramatically. From a relatively modest base in 2014-15, the sector has expanded nearly sixfold, reaching an estimated output of around Rs. 12 lakh crore in 2024-25.
Exports have grown even faster, increasing almost eight times during the same period. Electronics, particularly smartphones, have emerged as one of India’s leading export categories, reflecting strong global demand and improved manufacturing capabilities.
Mobile phone production has been a standout success story. The segment has seen exponential growth, transforming India from a net importer into a major exporter of smartphones.
India’s electronics manufacturing journey has evolved through a series of policy interventions and industry shifts:
The current rise in value addition indicates a transition from assembly-driven growth to a more integrated manufacturing ecosystem.
The increase in domestic value addition has been widely welcomed by industry leaders and policy experts. It signals a maturing ecosystem where India is moving beyond basic assembly to higher-value manufacturing processes.
Manufacturers and global technology companies operating in India have acknowledged the improved policy environment, citing stable incentives and infrastructure support as key enablers.
Industry stakeholders believe that the focus on localisation will help reduce import dependency, particularly on critical components such as semiconductors and display units.
At the same time, challenges remain. Experts point out that achieving higher value addition will require sustained investments in research and development, skilled workforce training, and supply chain integration.
According to data released by the Ministry of Electronics and Information Technology India’s electronics manufacturing sector has witnessed unprecedented growth in production and exports over the past decade.
A report by the NITI Aayog highlights that localisation is critical for enhancing competitiveness and reducing vulnerability to global supply disruptions.
Experts at the World Bank note that countries investing in end-to-end manufacturing ecosystems are better positioned to capture value in global supply chains.
The Production Linked Incentive scheme for large-scale electronics manufacturing has been a major driver of this transformation. The scheme has surpassed expectations in terms of investment, production, and exports, while also generating significant employment opportunities.
The rise in domestic value addition is expected to have wide-ranging implications for India’s economy, industry, and global positioning.
Higher value addition means a larger share of manufacturing value is retained within the country. This contributes to GDP growth, increases tax revenues, and creates jobs across the value chain.
The electronics sector has already become one of the fastest-growing segments of India’s manufacturing industry. With continued growth, it could play a pivotal role in achieving the government’s vision of becoming a global manufacturing powerhouse.
One of the key benefits of increased localisation is reduced reliance on imports. By producing more components domestically, India can improve its trade balance and enhance supply chain resilience.
This is particularly important in the context of global disruptions, where supply chain dependencies can impact production and economic stability.
India’s growing electronics manufacturing capabilities are positioning it as a credible alternative to traditional manufacturing hubs. Competitive costs, policy support, and a large domestic market are attracting global companies to set up operations in the country.
The rise of smartphones as a top export category underscores India’s potential to scale up in other electronics segments, including semiconductors, consumer electronics, and industrial equipment.
Looking ahead, experts believe that India’s focus will shift toward deeper localisation and technological advancement.
Key priorities are likely to include:
If these initiatives are implemented effectively, domestic value addition could rise further in the coming years, strengthening India’s position in global electronics supply chains.
The next phase of growth will depend on how successfully India transitions from assembly-led manufacturing to innovation-driven production.