India’s mobile manufacturing sector has attracted ₹96,000 crore in investment under the PLI scheme, with electronics production rising 15.8% to ₹13.11 lakh crore. Smartphones have now emerged as the country’s top export item, signaling a major shift in domestic manufacturing capacity and value addition.
The Production-Linked Incentive (PLI) scheme for large-scale electronics manufacturing has reached a significant milestone, attracting roughly ₹96,000 crore in investment toward the domestic mobile ecosystem. According to data shared by the Ministry of Electronics and IT, these incentives have been central to transforming India into a major hub for mobile production and global exports.
Scaling Domestic Electronics Production
India’s electronics production grew to ₹13.11 lakh crore in FY2024-25, up from ₹11.32 lakh crore in the previous fiscal year. This 15.8% increase indicates a rapid expansion in manufacturing capabilities. A notable achievement under these programs is the rise in domestic value addition, which reached 23% in FY2023-24. By incentivizing companies to manufacture locally rather than just assembling imported parts, the government aims to deepen the domestic supply chain and reduce long-term reliance on overseas components.
Export Leadership Shift
Perhaps the most dramatic shift for the Indian economy is the rise of smartphones as the leading individual export commodity. Just a decade ago, smartphones were not among India's top 100 exports. Today, they have overtaken traditional sectors like petroleum products, gems, and jewelry in export value. This pivot highlights how government policy and private capital investment have collectively altered India's export profile.
Expanding Beyond Mobiles
Building on the mobile manufacturing momentum, the government has extended its focus to other electronics segments. The PLI Scheme 2.0 for IT Hardware, launched in 2023, targets the production of laptops, tablets, and servers. While the mobile ecosystem is well-established, the IT hardware scheme is still in its earlier phases, having facilitated over ₹24,385 crore in production and attracting ₹1,056 crore in capital investment so far.
Similarly, the Electronics Component Manufacturing Scheme (ECMS) is designed to localize the production of complex parts. With 75 approved applications, this initiative is expected to attract an additional ₹61,671 crore in investments. The broader semiconductor program also complements these efforts, with 12 projects approved at a commitment of ₹1.64 lakh crore. The introduction of Semicon 2.0, with a fresh outlay of ₹1,27,500 crore, further aims to build a comprehensive ecosystem for chip design and fabrication.
Employment and Monitoring
The electronics sector now supports an estimated 25 lakh direct and indirect jobs, with the mobile manufacturing ecosystem contributing nearly half of this figure. While the growth is significant, investors should continue to track the actual conversion of committed investments into operational manufacturing units. Key monitorables include the pace of domestic value addition, the progress of component manufacturing, and the ability of these companies to sustain competitive export volumes as global demand fluctuates.