NEW DELHI: India’s electronics exports have reached $22.2 billion in the first half of FY 2025-26, positioning the sector on track to become the country’s second-largest export category, according to the Economic Survey released on Friday.
The survey highlighted that India’s electronics sector has undergone a structural transformation in recent years, rising from the seventh-largest export category in FY22 to the third-largest and fastest-growing by FY25.
“This momentum continued into the first half of FY26, with electronics exports reaching $22.2 billion, positioning the sector on track to become the second-largest export item,” the survey said.
The major driver of this growth is the expansion of the mobile manufacturing segment, which saw a nearly 30-fold increase in production value, rising from ₹18,000 crore in FY15 to ₹5.45 lakh crore in FY25. This growth has transformed India from a net importer to the world’s second-largest mobile phone manufacturer. Today, the country hosts over 300 mobile manufacturing units, a significant leap from just two units in 2014.
However, the survey also recognized the challenges in building a competitive electronics manufacturing ecosystem, including the need for large capital investments, economies of scale, long gestation periods, access to cutting-edge technologies, and a highly skilled workforce. In response, the government has introduced several strategic initiatives.
The Production-Linked Incentive (PLI) Scheme for Large-Scale Electronics Manufacturing, launched in April 2020, has generated cumulative production of approximately ₹9.34 lakh crore, exports worth ₹5.12 lakh crore, and investments of ₹13,759 crore as of September 2025. PLI Scheme 2.0 for IT Hardware, launched in May 2023, has achieved cumulative production of ₹14,462.7 crore and investments of ₹892.47 crore.
The Electronics Component Manufacturing Scheme (ECMS), notified in April 2025 with a budget of ₹22,919 crore, aims to develop a robust domestic component manufacturing ecosystem and integrate it with global value chains. Similarly, the Modified Programme for Development of Semiconductors and Display, launched under the ₹76,000 crore India Semiconductor Mission (ISM), has approved landmark projects including Micron’s ATMP facility, Tata Electronics’ semiconductor fab, one compound semiconductor fab, and various packaging facilities.
Additionally, 24 projects for financial support and 100 companies for design infrastructure support for chip design by domestic start-ups and MSMEs have been approved.