Economic Survey: India aims for electronics manufacturing worth $300 bln by FY26

India aims to achieve electronics manufacturing worth $300 billion by FY26 as the country aspires to become a $1 trillion economy by 2025. As per Economic Survey 2022-23, the domestic electronics industry was valued at $118 billion as of FY20 and the industry continues its growth path, led by mobile phones, consumer electronics and industrial electronics.

As per data, in FY 23 (April-November, electronics exports grew in 13.8%, highest in the last six years. With robust growth, India aims to achieve $120 billion of electronics exports by FY 26.

“The domestic electronics industry, as of FY20, is valued at $118 billion. India aims to reach $300 billion worth of electronics manufacturing and $120 billion in exports by FY 26, supported by the vision of a $1 trillion digital economy by 2025,” the survey said.

The major drivers of growth in this industry are mobile phones, consumer electronics, and industrial electronics. In the mobile phone segment, India has become the second-largest mobile phone manufacturer globally, with the production of handsets going up from 6 crore units in FY 15 to 31 crore units in FY 22. “These numbers are expected to improve as more domestic and global players set up and expand their bases in India,” the survey said.

Two major global and domestic players in electronic manufacturing services have already embraced the production linked incentive (PLI) scheme. The scheme will help many more domestic players to attain economies of scale in production through localising. “Hence, this will further enhance export competitiveness and increase India’s participation in the global value chain,” the survey said.

Some of the initiatives and incentives provided by the government to nurture and enhance the electronics manufacturing base include the PLI scheme for large scale electronics manufacturing, the PLI scheme for IT hardware, the scheme for promotion of manufacturing of electronic components and semiconductors (SPECS). Additionally, under the programme for development of semiconductors and display manufacturing ecosystem in India, the Cabinet approved the comprehensive development of a sustainable semiconductor and display ecosystem in the country with an outlay of Rs 76,000 crore.