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Industry News- Feb 03,25
In December 2024, India's electronics exports surged by 35.1 per cent to reach a two-year high of $3.58 billion, up from $2.65 billion in December 2023, according to the Ministry of Commerce and Industry, Government of India. Similarly, electronics exports rose by 27.4 per cent during April-November 2024, hitting $22.5 billion compared to $17.66 billion during the same period in 2023.
In December 2024, India's electronics exports surged by 35.1 per cent to reach a two-year high of $3.58 billion, up from $2.65 billion in December 2023, according to the Ministry of Commerce and Industry, Government of India. Similarly, electronics exports rose by 27.4 per cent during April-November 2024, hitting $22.5 billion compared to $17.66 billion during the same period in 2023. Despite global challenges like high-interest rates and geopolitical conflicts, India’s electronic goods exports in FY24 reached $29.12 billion, marking a 23.6 per cent growth over FY23. This reflects rising foreign demand for Indian electronics and expanding domestic production capacities.
The Indian electronics manufacturing landscape has seen remarkable growth over the last 5-6 years. Initiatives like Make in India and Digital India have established a strong foundation, while the Production-Linked Incentive (PLI) scheme has proven to be a transformative measure, boosting local production and reducing reliance on imports.
Five years ago, nearly two-thirds of India’s electronics consumption came from imported finished goods, with only one-third produced domestically. By 2022-23, domestic manufacturing accounted for $80 billion of India’s $120 billion electronics consumption, reversing this ratio due to the success of the PLI scheme. Mobile phones, which make up 45-50 per cent of the market, have been at the forefront of this shift, with most now manufactured locally. India’s electronics manufacturing market doubled from $49 billion in 2017 to over $100 billion in March 2024. Electronic goods have now climbed to the third spot among India’s top export performers, behind only engineering products and petroleum.
However, local value addition in electronics manufacturing remains low. Despite rapid growth in final assembly under the PLI schemes, key components—such as printed circuit boards (PCBs), camera modules, lithium-ion cells, and display assemblies—still rely heavily on imports. Local value addition currently accounts for less than 20 per cent of production. With India’s demand for electronic components expected to rise from $45.5 billion in 2023 to $240 billion by 2030 (as per a CII report), establishing a robust domestic supply chain is critical.
One of the key challenges is the heavy dependence on imported semiconductors, which poses supply chain vulnerabilities. As the core of all modern electronic devices, semiconductors play a vital role in the digital infrastructure. To address this, India has introduced some of the world’s most attractive incentives for semiconductor manufacturing, covering 70-75 per cent of project costs through combined support from the central and state governments. These efforts have secured investments of over ?1.5 trillion from domestic and global firms, with production expected to commence by the second half of 2025.
Still, India currently accounts for just 0.25 per cent of the global semiconductor manufacturing output. While domestic growth is promising, competitors like Taiwan and South Korea are far ahead in terms of production scale and technological advancements.
The ongoing geopolitical tensions between China and developed countries present India with a strategic opportunity to establish itself as a reliable alternative in electronics and semiconductor manufacturing. To achieve this, India must work towards creating strategic autonomy through technological ownership and expanding its role beyond final assembly into design and component manufacturing.
Although domestic brands and design-led manufacturing remain underdeveloped, India’s strengths—such as R&D centers for leading global semiconductor companies and its large pool of design engineers (20 per cent of the global total)—position it well for long-term growth. Scaling up value addition, fostering innovation, and developing domestic brands will be the key to unlocking the sector’s full potential.
On March 5-6, 2025, ASAPP Info Global Group (the publisher of SME) is hosting Cement Expo Forum 2025 in Hyderabad. Additionally, SME will feature a special issue for Hannover Messe in April 2025, while our sister publications, Construction World and Equipment India, will publish a special issue for Bauma Munich, also in April 2025. To participate in the event or special editions, contact us at marketing@asappinfoglobal.com.
Ministry of Commerce and Industry
Government of India
electronics exports
Indian electronics manufacturing landscape
Production-Linked Incentive
Mobile phones
robust domestic supply chain
modern electronic devices
semiconductors
Construction World and Equipment India
Bauma Munich
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