India's mobile phone exports have surged to ₹2.59 lakh crore in FY26, up from ₹1,500 crore in FY15. This massive growth in electronics manufacturing is driven by government incentive programs and a push for local semiconductor production. The expansion reflects a structural shift in India's role in the global electronics supply chain.
India’s electronics manufacturing sector has recorded a transformative decade of growth, with mobile phone exports reaching an estimated ₹2.59 lakh crore in fiscal year 2025-26. This represents a 165-fold increase compared to the ₹1,500 crore reported in FY15. The scale of this rise highlights the country's transition from a net importer of mobile devices to a significant global manufacturing hub.
Domestic Manufacturing and Output Expansion
The growth in exports is supported by a massive increase in domestic production capacity. Total mobile phone production within India is estimated to have grown 33 times, moving from ₹18,000 crore in FY15 to ₹6.27 lakh crore by FY26. Beyond mobile devices, the broader electronics manufacturing sector has seen its total output rise sevenfold, climbing from approximately ₹1.9 lakh crore in FY15 to ₹13.11 lakh crore in FY26. Total electronics exports have also seen an elevenfold increase to ₹4.24 lakh crore over the same period.
Policy Support and Semiconductor Ecosystem
This performance is largely attributed to targeted government initiatives aimed at strengthening the electronics value chain. The Ministry of Electronics and Information Technology has focused on attracting global and domestic companies to set up large-scale assembly and manufacturing facilities. A core component of this strategy is the Semicon India Programme, which was introduced in 2022 to incentivize the creation of semiconductor fabrication, display manufacturing, and assembly facilities.
The sector is now seeing early operational results, with companies like Micron and Sahasra already manufacturing memory chips, including DRAM, NAND Flash, and Solid State Drives within India. To maintain this momentum, the government has launched Semicon 2.0, which intends to further incentivize indigenous chip design and packaging capabilities.
Investor Monitorables for the Electronics Sector
For investors, the growth of this sector brings both opportunities and specific areas to monitor. While the increase in output is clear, the long-term sustainability of these margins will depend on how successfully domestic manufacturers move from simple assembly to higher-value-added processes like chip design and component manufacturing. Furthermore, investors should track the progress of the Semicon 2.0 mission, as the availability of domestically produced components will be a deciding factor in reducing import dependence and improving the profit margins of electronic manufacturers. Future updates on project commissioning and the scale of local component sourcing will be essential for assessing the sector's long-term profitability.