STRENGTHENING INDIA'S ELECTRONICS VALUE CHAIN

OVER the last seven to ten years, the Government of India has pursued a series of policy initiatives aimed at positioning the country as a global hub for electronics manufacturing. Beginning with the Modified Special Incentive Package Scheme (MSIPS), followed by SPECS, the Production Linked Incentive (PLI) schemes for key sectors, and later the India Semiconductor Mission (ISM) and the Electronics Component Manufacturing Scheme (ECMS), this sustained policy focus has delivered tangible outcomes.

-  J.S. Gujral

The value of electronics manufacturing in India has grown nearly sixfold, increasing from about $21 billion in 2014–15 to over $125 billion in 2024–25. Mobile manufacturing has been a clear standout, recording almost a thirty-fold increase in production value, rising from approximately $200 million in FY15 to around $65 billion in FY25. Exports have also accelerated sharply, with iPhone exports from India reaching $24 billion in 2025, nearly double the $13 billion exported by Apple from India in calendar year 2024.

Building on the success of the PLI schemes and related initiatives, the sector has attracted significant capital investments of around Rs 2 lakh crore up to September 2025. These programmes have also contributed to the creation of over 1.33 million direct and indirect jobs in the electronics sector. With a strong foundation now in place, policy focus is increasingly shifting toward developing a domestic ecosystem for component manufacturing and establishing a robust semiconductor supply chain within the country.

Electronics Manufacturing

Government policy has followed a clear and structured progression. The initial focus was on establishing India as a hub for electronics assembly, largely driven by the Production Linked Incentive (PLI) schemes. This was followed by efforts to create a domestic ecosystem for key components through initiatives such as the Electronics Component Manufacturing Scheme (ECMS).