India's electronics manufacturing output grew seven-fold to ₹13.11 lakh crore in FY26, compared to ₹1.9 lakh crore in FY15. Mobile phone production led this growth, surging 33 times to ₹6.27 lakh crore over the same period. This expansion strengthens the country's push to build a local semiconductor ecosystem for global supply chains.
India has recorded a massive expansion in its electronics manufacturing sector over the last ten years. Official data shows that total electronics production reached approximately ₹13.11 lakh crore in the fiscal year 2026, a sharp increase from the ₹1.9 lakh crore recorded in FY15. Exports within the sector also saw significant growth, climbing more than eleven-fold to reach ₹4.24 lakh crore.
Mobile Sector Growth and Export Surge
Mobile phone manufacturing has emerged as the primary driver behind this rapid industrial shift. Production levels jumped 33 times over the decade, moving from about ₹18,000 crore in FY15 to ₹6.27 lakh crore in FY26. This scaling up of local assembly is reflected in export figures, which rose from ₹1,500 crore to ₹2.59 lakh crore. The increase in mobile phone production is closely linked to government schemes aimed at attracting global electronics firms to establish large-scale manufacturing facilities within the country.
Semiconductor Ecosystem and Market Demand
To move beyond assembly, the government is focusing on building a local semiconductor supply chain through the Semicon India Programme. Companies such as Micron and Sahasra have already started production of memory devices, including DRAM, NAND Flash memory, and solid-state drives. This local manufacturing effort comes as global demand for specialized chips remains high, largely driven by the growth of artificial intelligence servers and the expansion of data centers worldwide. This global demand has led to higher prices and supply tightness for memory components, which provides a challenging but potentially rewarding environment for new domestic players.
Investor Monitorables and Future Growth
The government is now looking toward its Semicon 2.0 program to attract further investment into chip fabrication and assembly. For investors, the long-term impact of this sector growth depends on the ability of domestic manufacturers to achieve higher value addition. Moving from simple assembly to more complex component manufacturing is a key milestone for the industry. Key monitorables for the sector include the pace of new chip fabrication projects, the availability of skilled labor, and whether the current export demand remains stable amid fluctuating global technology spending. Investors may also track how government incentives and infrastructure support affect the operating margins of electronics manufacturing services companies as they scale their operations.