India has emerged as the world's second-largest mobile phone producer, witnessing remarkable growth in domestic manufacturing. In 2014-15, only 26% of mobile phones sold in India were locally made, a figure that surged to 99.2% by December 2024. From just two mobile manufacturing units in 2014, the country now has over 300, and projections indicate that India's electronics production will reach $300 billion by 2026. Mobile phone exports have also skyrocketed, increasing from Rs 15.66 billion in 2014-15 to Rs 1.2 trillion in 2023-24, marking a 77-fold surge. The semiconductor ecosystem is also gaining momentum, with five major projects approved, totalling nearly Rs 1.52 trillion in investment.

Previously dependent on imports, India is rapidly becoming self-reliant in electronics manufacturing, fuelled by the Make in India initiative. This transformation is driven by strategic government policies, such as the Phased Manufacturing Programme (PMP) and the Production Linked Incentive (PLI) scheme. The PMP has enhanced domestic value addition, shifting production from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) levels. Meanwhile, the PLI scheme, launched in 2020, has attracted significant investment, with cumulative production reaching Rs 7,158.23 billion and exports totalling Rs 3,903.87 billion as of February 2025.

The government’s push for semiconductor manufacturing has also gained traction. The Semicon India Program, launched in 2021 with an outlay of Rs 760 billion, aims to establish a robust semiconductor ecosystem. Key projects include Tata Electronics’ semiconductor fab facility with a Rs 915.26 billion investment and Micron’s project worth Rs 220 billion. The India Semiconductor Mission has further strengthened the sector, with Tata Electronics and Tata Semiconductor Manufacturing signing a Fiscal Support Agreement for India's first commercial semiconductor fab in Dholera, Gujarat.

India’s journey from an import-dependent electronics market to a global manufacturing powerhouse highlights the success of its strategic initiatives. With a $300 billion electronics production target by 2026, a growing skilled workforce, and strong policy support, India is well-positioned to become a leader in global electronics and semiconductor manufacturing.

Dr Ajai Chowdhry, Founder HCL , Chairman EPIC Foundation comments, "This is the most important scheme to be cleared by the government for increasing the value addition in the country. I welcome the announcement of the passive component manufacturing scheme. With an approved outlay of 22,919 crore for a period of 6 years from FY26 to FY32, the scheme marks a significant milestone in India's growth trajectory of becoming a global hub for electronics manufacturing. The government has been on the right track from the beginning, having announced the semiconductor mission, which will be creating active components and semiconductor chips for the country. Before that, the government had also announced a major PLI program for electronics manufacturing, which has resulted in phenomenal growth of the electronics industry and has also resulted in creating jobs and exports from India. Next, this is the most important scheme to be cleared by the government for increasing the value addition in the country. And this is something that I've waited for decades to see happening.  This is very critical because step by step, the government has taken up every area that the industry was looking for. And this is a major step to take forward the electronics industry. This initiative could be a pivotal moment for India's electronics and semiconductor industry, positioning the country as a significant player in the global market"

(PIB & other sources)