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Jeet B Bhayani (SEBI RA)

7th Apr · SEBI-Registered Analyst

India's infrastructure for electronics manufacturing has been improving, with domestic value addition increasing to 18%-20%, as reported by the Ministry of Electronics & Information Technology. This has been achieved due to the Government's ongoing commitment to enhance the entire value chain, including finished products, components, sub-modules, basic materials, and capital equipment. Over the last 11 years, output has increased almost sixfold, from Rs. 1.90 lakh crore (US$ 24.74 billion) in 2014-15 to approximately Rs. 12 lakh crore (US$ 156.39 billion) in 2024-25, with exports increasing almost eightfold, totalling Rs. 3.30 lakh crore (US$ 43.01 billion). The manufacturing of mobile phones has demonstrated significant growth, rising from Rs. 18,000 crores (US$ 2.35 billion) to rupees. 5.45 lakh crore (US$ 71.02 billion) in this timeframe, showcasing India’s swift rise as a formidable base for electronics manufacturing. The Large Scale Electronics Manufacturing (LSEM) Production Linked Incentive (PLI) Scheme has played a central role in this growth journey. By February 2026, the PLI Schemehads exceeded the established targets in terms of investments, production, and exports, with investments totalling Rs. 17,519 crore (US$ 2.28 billion), output at Rs. 11,01,813 crore (US$ 143.69 billion), and exports valued at Rs. 6,20,974 crore (US$ 80.99 billion). The PLI Scheme has resulted in the direct creation of over 1.85 lakh jobs, with smartphones rising to become India's leading exported product in the year 2025. This steady increase in value addition signifies the localisation of electronic components and sub-assemblies, which would lead to a decrease in import reliance and strengthen India’s role as a global hub for electronic and semiconductor manufacturing.

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