Make in India’s Leap in Electronics Manufacturing & Exports

    Introduction Not long ago, India relied heavily on imports, with most electronics being imported. However, things are changing fast. With the Make in India initiative, the country is now building its own electronics industry, attracting big investments and boosting local production. As a result, India’s electronics exports are growing rapidly, even surpassing some traditional sectors like textiles. With strong government support and expanding factories, India is well on its way to becoming a global hub for electronics manufacturing. [1] Projections indicate that India’s electronics production will reach USD 300 billion by 2026. Government schemes for the Electronics boom in India Make in India Launched in 2014, the Make in India initiative has been a pivotal step in India's nation-building efforts. The initiative was conceived during a period when India's economic growth had sharply declined, and the country faced critical challenges in sustaining its development trajectory. Against this backdrop, "Make in India" was designed to transform India into a global hub for design and manufacturing. Its core objectives were to facilitate investment, encourage innovation, and develop world-class infrastructure. As one of the pioneering 'Vocal for Local' initiatives, it sought not only to boost India's manufacturing capabilities but also to showcase its industrial potential on a global stage. [2] The "Make in India" initiative has been a cornerstone in transforming India into a global manufacturing hub. With a strong focus on enhancing industrial capabilities, fostering innovation, and creating world-class infrastructure, the initiative aims to position India as a key player in the global economy. Smartphones in India: As a result, India’s electronics sector is experiencing significant growth supported by various government initiatives meant to position the country as a global leader. [4] [5] An overview of mobile phone manufacturing in India and its success [6] Phased Manufacturing Programme (PMP) The Phased Manufacturing Programme (PMP) has been notified to promote domestic value addition in mobile phones and their sub-assemblies/parts manufacturing in 2017. This scheme aims to encourage large-scale production and create a strong local manufacturing ecosystem for mobile devices. As a result, India has rapidly started attracting investments into this sector and significant manufacturing capacities have been set up in the country. The manufacturing of mobile phones has been steadily moving from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) level, thereby progressively increasing the domestic value addition. [7] Semi Knocked Down (SKD) refers to a product partially assembled before shipping, while Completely Knocked Down (CKD) means a product is shipped as individual components for final assembly at the destination. Production linked Incentive (PLI) Schemes To boost domestic manufacturing and attract investment in mobile phones value chain including electronic components and semiconductor packaging, Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified on April 1, 2020. The scheme extends an incentive of 3% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments viz. Mobile Phones and Specified Electronic Components, to eligible companies, for a period of 5 years. [8] In a strong push to accelerate industrial growth, the Government has significantly increased budget allocations for key sectors under the PLI Scheme , reaffirming its commitment to strengthening domestic manufacturing. The allocation for Electronics soared from ₹5,747 crore (revised estimate for 2024-25) to ₹8,885 crore in 2025-26. [9] As of February 2025, the scheme has led to: (for Large Scale Electronics Manufacturing)   The primary goals of the PLI Schemes are to attract substantial investments, incorporate advanced technology, and ensure operational efficiency. By fostering economies of scale and enhancing global competitiveness, these schemes are expected to significantly boost production, stimulate manufacturing activities, and contribute to economic growth over the coming years. [11] Semiconductor Ecosystem Development – India's semiconductor market to grow at 13%, reach Rs. 8,95,134 crore (US$ 103.4 billion) by 2030: IESA (India Electronics and Semiconductor Association) [12] Semicon India Program: Launched in 2021 with a financial outlay of ₹76,000 crore, the Semicon India program is structured to promote the domestic semiconductor industry through incentives and strategic partnerships. This initiative supports various sectors of the semiconductor industry, extending beyond just fabrication facilities (fabs) to include packaging, display wires, Outsourced Semiconductor Assembly and Testing (OSATs), sensors, and other critical components, creating a comprehensive ecosystem. [13] Following four schemes have been introduced under the aforesaid programme: . [14] At Global Investors Summit 2025, it was announced that India’s first indigenous semiconductor chip will be ready for production by 2025. [15] India's semiconductor ecosystem has gained significant momentum, with several landmark projects receiving approval- These proposals have a total combined investment nearing Rs 1.52 lakh crores , signalling a strong commitment to advancing India's position in the global semiconductor landscape. [18] Setting up a semiconductor manufacturing base in the country has been a significant part of Make in India, which India has been attempting to achieve for over six decades. The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) helps mitigate the challenges of domestic manufacturing of electronic components and semiconductors in order to strengthen the electronics manufacturing ecosystem in the country. The scheme will provide financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products, i.e., electronic components, semiconductor/ display fabrication units, ATMP units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods, all of which involve high value added manufacturing. [19] India Semiconductor Mission, Tata Electronics, and Tata Semiconductor Manufacturing Sign Fiscal Support Agreement for Semiconductor Fab – In March 2025, in a significant milestone for India's semiconductor industry, India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have signed a Fiscal Support Agreement (FSA) for India's first commercial semiconductor fab in Dholera, Gujarat. This breakthrough agreement represents a decisive step forward in strengthening India's technological self-reliance under the modified programme for semiconductor & display manufacturing ecosystem in India. [20] Conclusion: India's rapid transformation into a global electronics manufacturing hub is a testament to the success of the Make in India initiative. With numerous schemes to support the manufacturing processes in India, the country has significantly boosted local manufacturing, exports, and investment. The remarkable growth from just 2 mobile manufacturing units in 2014 to over 300 today , demonstrates India's commitment to self-reliance and innovation. As India moves towards a USD 300 billion electronics production target by 2026 , its robust policies and skilled workforce are paving the way for sustained growth, positioning the nation as a key player in the global electronics and semiconductor industry. References- Make in India’s Leap in Electronics Manufacturing & Exports **** Santosh Kumar/ Ritu Kataria/ Kritika Rane     Introduction Not long ago, India relied heavily on imports, with most electronics being imported. However, things are changing fast. With the Make in India initiative, the country is now building its own electronics industry, attracting big investments and boosting local production. As a result, India’s electronics exports are growing rapidly, even surpassing some traditional sectors like textiles. With strong government support and expanding factories, India is well on its way to becoming a global hub for electronics manufacturing. [1] Projections indicate that India’s electronics production will reach USD 300 billion by 2026. Government schemes for the Electronics boom in India Make in India Launched in 2014, the Make in India initiative has been a pivotal step in India's nation-building efforts. The initiative was conceived during a period when India's economic growth had sharply declined, and the country faced critical challenges in sustaining its development trajectory. Against this backdrop, "Make in India" was designed to transform India into a global hub for design and manufacturing. Its core objectives were to facilitate investment, encourage innovation, and develop world-class infrastructure. As one of the pioneering 'Vocal for Local' initiatives, it sought not only to boost India's manufacturing capabilities but also to showcase its industrial potential on a global stage. [2] The "Make in India" initiative has been a cornerstone in transforming India into a global manufacturing hub. With a strong focus on enhancing industrial capabilities, fostering innovation, and creating world-class infrastructure, the initiative aims to position India as a key player in the global economy. Smartphones in India: As a result, India’s electronics sector is experiencing significant growth supported by various government initiatives meant to position the country as a global leader. [4] [5] An overview of mobile phone manufacturing in India and its success [6] Phased Manufacturing Programme (PMP) The Phased Manufacturing Programme (PMP) has been notified to promote domestic value addition in mobile phones and their sub-assemblies/parts manufacturing in 2017. This scheme aims to encourage large-scale production and create a strong local manufacturing ecosystem for mobile devices. As a result, India has rapidly started attracting investments into this sector and significant manufacturing capacities have been set up in the country. The manufacturing of mobile phones has been steadily moving from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) level, thereby progressively increasing the domestic value addition. [7] Semi Knocked Down (SKD) refers to a product partially assembled before shipping, while Completely Knocked Down (CKD) means a product is shipped as individual components for final assembly at the destination. Production linked Incentive (PLI) Schemes To boost domestic manufacturing and attract investment in mobile phones value chain including electronic components and semiconductor packaging, Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified on April 1, 2020. The scheme extends an incentive of 3% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments viz. Mobile Phones and Specified Electronic Components, to eligible companies, for a period of 5 years. [8] In a strong push to accelerate industrial growth, the Government has significantly increased budget allocations for key sectors under the PLI Scheme , reaffirming its commitment to strengthening domestic manufacturing. The allocation for Electronics soared from ₹5,747 crore (revised estimate for 2024-25) to ₹8,885 crore in 2025-26. [9] As of February 2025, the scheme has led to: (for Large Scale Electronics Manufacturing)   The primary goals of the PLI Schemes are to attract substantial investments, incorporate advanced technology, and ensure operational efficiency. By fostering economies of scale and enhancing global competitiveness, these schemes are expected to significantly boost production, stimulate manufacturing activities, and contribute to economic growth over the coming years. [11] Semiconductor Ecosystem Development – India's semiconductor market to grow at 13%, reach Rs. 8,95,134 crore (US$ 103.4 billion) by 2030: IESA (India Electronics and Semiconductor Association) [12] Semicon India Program: Launched in 2021 with a financial outlay of ₹76,000 crore, the Semicon India program is structured to promote the domestic semiconductor industry through incentives and strategic partnerships. This initiative supports various sectors of the semiconductor industry, extending beyond just fabrication facilities (fabs) to include packaging, display wires, Outsourced Semiconductor Assembly and Testing (OSATs), sensors, and other critical components, creating a comprehensive ecosystem. [13] Following four schemes have been introduced under the aforesaid programme: . [14] At Global Investors Summit 2025, it was announced that India’s first indigenous semiconductor chip will be ready for production by 2025. [15] India's semiconductor ecosystem has gained significant momentum, with several landmark projects receiving approval- These proposals have a total combined investment nearing Rs 1.52 lakh crores , signalling a strong commitment to advancing India's position in the global semiconductor landscape. [18] Setting up a semiconductor manufacturing base in the country has been a significant part of Make in India, which India has been attempting to achieve for over six decades. The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) helps mitigate the challenges of domestic manufacturing of electronic components and semiconductors in order to strengthen the electronics manufacturing ecosystem in the country. The scheme will provide financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products, i.e., electronic components, semiconductor/ display fabrication units, ATMP units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods, all of which involve high value added manufacturing. [19] India Semiconductor Mission, Tata Electronics, and Tata Semiconductor Manufacturing Sign Fiscal Support Agreement for Semiconductor Fab – In March 2025, in a significant milestone for India's semiconductor industry, India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have signed a Fiscal Support Agreement (FSA) for India's first commercial semiconductor fab in Dholera, Gujarat. This breakthrough agreement represents a decisive step forward in strengthening India's technological self-reliance under the modified programme for semiconductor & display manufacturing ecosystem in India. [20] Conclusion: India's rapid transformation into a global electronics manufacturing hub is a testament to the success of the Make in India initiative. With numerous schemes to support the manufacturing processes in India, the country has significantly boosted local manufacturing, exports, and investment. The remarkable growth from just 2 mobile manufacturing units in 2014 to over 300 today , demonstrates India's commitment to self-reliance and innovation. As India moves towards a USD 300 billion electronics production target by 2026 , its robust policies and skilled workforce are paving the way for sustained growth, positioning the nation as a key player in the global electronics and semiconductor industry. References- Make in India’s Leap in Electronics Manufacturing & Exports **** Santosh Kumar/ Ritu Kataria/ Kritika Rane