India's electronics manufacturing grows sevenfold to Rs 13.11 lakh cr

India's electronics manufacturing sector has experienced remarkable growth over the last decade, expanding nearly sevenfold from approximately Rs 1.9 lakh crore in 2014-15 to Rs 13.11 lakh crore in the fiscal year 2025-26. The industry now provides employment to nearly 25 lakh people, according to the Ministry of Electronics and Information Technology.

During the same period, electronics exports have also seen a sharp rise, increasing from around Rs 38,000 crore in 2014-15 to Rs 4.24 lakh crore in 2025-26. Mobile phone production has been a standout performer, growing 33 times from about Rs 18,000 crore to Rs 6.27 lakh crore. Mobile phone exports have surged even more dramatically, increasing 165 times from approximately Rs 1,500 crore to Rs 2.59 lakh crore. India now manufactures about 99.2% of the mobile phones sold domestically, making them the country's largest exported item.

The government attributes this expansion to a series of strategic initiatives. These include reforms in foreign direct investment (FDI), tax and labor policies, and the implementation of Production Linked Incentive (PLI) schemes, all designed to strengthen the nation's electronics manufacturing ecosystem. Tamil Nadu has emerged as a significant beneficiary, hosting several manufacturing plants supported by these government efforts.

The state has also seen the approval of two Electronics Manufacturing Clusters, one in Manallur (474.3 acres, Rs 587.47 crore project cost) and another in Pillapaikkam (379.3 acres, Rs 424.55 crore project cost). Furthermore, India has scaled up semiconductor talent development, supporting 315 institutes nationwide, including 61 in Tamil Nadu. Under the Semicon India Programme, 12 semiconductor manufacturing projects across six states have been approved, with total investment commitments around Rs 1.64 lakh crore, and commercial production has already begun at three plants.

Support for semiconductor design is also being provided through the Design Linked Incentive scheme, which has approved 24 projects for financial assistance. Additionally, 105 startups and MSMEs are receiving support for Electronic Design Automation tools. In the realm of artificial intelligence, 20 indigenous sovereign AI model proposals have been identified for support, and 58 AI Centres of Excellence have been approved across various states and Union Territories, including two in Tamil Nadu. The recently approved Semicon 2.0 policy is expected to further boost the semiconductor ecosystem and create more investment opportunities.