India's electronics manufacturing sector recorded output of ₹13.11 lakh crore in FY 2025-26, up from ₹11.32 lakh crore in FY 2024-25 — a year-on-year growth of 15.8 per cent, the government told Parliament on Wednesday, 29 July. Electronics exports have surged 11-fold to over ₹4 lakh crore over the past 12 years, Union Minister of State for Electronics and IT Jitin Prasada informed the Lok Sabha.

Key Production Milestones

The sector now supports 25 lakh jobs — direct and indirect — underscoring its expanding role in India's industrial employment landscape. The mobile manufacturing ecosystem alone accounts for roughly 12 lakh workers across the value chain. Notably, certain high-precision mobile phone manufacturing segments employ nearly 70 per cent women in their total workforce, making electronics one of the more gender-inclusive segments of Indian industry.

India has reached a point where 99.2 per cent of mobile phones used domestically are manufactured within the country. The nation now ranks as the second-largest mobile phone manufacturer globally by volume — a dramatic reversal from its position as a net importer in 2014.

Smartphones Now India's Top Export Commodity

Smartphones, which did not feature among India's top 100 exported commodities in 2014, have emerged as the country's single largest exported commodity in FY 2025-26, surpassing petroleum, gems, and jewellery. The Production-Linked Incentive scheme for Large-Scale Electronics Manufacturing (PLI-LSEM) has catalysed investments of approximately ₹96,000 crore (around $14 billion) in the mobile manufacturing ecosystem.

IT Hardware and Component Schemes

The government launched PLI Scheme 2.0 for IT Hardware in 2023, targeting a robust domestic ecosystem for laptops, tablets, and servers, with the aim of reducing import reliance and positioning India as a trusted global supply chain hub. As of now, the scheme has generated cumulative production of ₹24,385.89 crore, cumulative investment of ₹1,056.36 crore, and 5,216 direct jobs, according to Minister Prasada.

The Electronics Component Manufacturing Scheme (ECMS) has approved 75 applications across 23 products. These approved units are projected to attract investments of ₹61,671 crore, generate production of ₹4.51 lakh crore, and create 65,040 direct employment opportunities over the scheme's tenure. The scheme originally envisaged investments of ₹59,350 crore and direct employment of 91,600.

What the Numbers Signal

This comes amid a broader global push to diversify electronics supply chains away from China, with India actively positioning itself as an alternative manufacturing hub. The 12-year trajectory — from net mobile phone importer to the world's second-largest manufacturer — represents one of the more concrete industrial transformations in the country's recent economic history. The next test is whether India can move up the value chain into semiconductors and advanced components, where domestic production remains nascent.