India's electronics manufacturing value addition jumps to 70%, set to reach 90% by FY27

ANI April 11, 2025 134 views

India is experiencing a remarkable transformation in its electronics manufacturing sector, rapidly increasing local value addition and reducing import dependence. The country has strategically leveraged policies like Production Linked Incentive (PLI) and Phased Manufacturing Program to attract global manufacturers. Mobile phone production has been particularly successful, with 99% of phones sold in India now manufactured locally. This shift positions India as a strong alternative in the global electronics supply chain, moving away from traditional import-driven models.

"India is quickly becoming a top choice for global electronics manufacturing" - Axis Capital Report
New Delhi, April 11: India is strengthening its position as a global manufacturing hub, with value addition in electronics manufacturing having increased from 30 per cent to around 70 per cent, and is projected to reach 90 per cent by FY27, according to Axis Capital report.

Key Points

1

Electronics value addition surges from 30% to 70%

2

Mobile phone exports grow 77 times in decade

3

Local production now exceeds imports by 24%

With a new components policy in place, the country is aiming to increase value addition from the current 15-16 per cent to 40-50 per cent. Mobile phone exports have grown 77 times in the last 10 years.

India has cut down its imports of fully built air conditioners (CBUs) from 35 per cent in FY19 to just 5 per cent in FY25. Key parts like compressors, copper tubes, and aluminum coils are now being made in India.

In FY24, about 8.5 million RAC compressors were imported, but within the next 2-3 years, all of them are expected to be made locally.

The demand for Printed Circuit Board Assembly (PCBA) has jumped in both business and consumer sectors, helped by higher import duties.

Until 2016, India imported more electronics than it produced. But things have changed. Thanks to the "Make in India" push, local production is now about 24 per cent higher than imports (as of FY24).

Electronics exports are growing at a fast pace, with a compound annual growth rate (CAGR) of about 26 per cent from FY16 to FY25.

Imports of mobile PCBAs, worth around Rs 300 billion in FY18, have dropped to nearly zero in FY24. With new policies in place, India is now moving toward making more PCB and other electronic components within the country.

India is quickly becoming a top choice for global electronics manufacturing and exports. Thanks to supportive government policies like the Production Linked Incentive (PLI), Phased Manufacturing Program (PMP), and Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), along with a skilled workforce and improving infrastructure, the country is gaining ground in the global supply chain.

To attract manufacturers, the government has reduced the corporate tax rate to just 15 per cent for new manufacturing units. Combined with the global "China +1" strategy and easier export processes, India is now seen as a strong alternative for global companies.

India is now the second-largest mobile phone producer in the world. Around 99 per cent of the phones sold in India are made locally.

Reader Comments

R
Rahul K.
This is amazing progress! 🇮🇳 From importing most electronics to becoming the 2nd largest mobile producer in just a decade - Make in India is clearly working. Can't wait to see what FY27 brings!
P
Priya M.
While the growth is impressive, I hope this manufacturing boom also focuses on sustainable practices. More production means more e-waste - are we preparing for that challenge?
A
Amit S.
The 77x growth in mobile exports is mind-blowing! Remember when we used to import everything? Now we're exporting to the world. Proud moment for Indian manufacturing 👏
S
Sanjay T.
Great news, but we still need to work on semiconductor manufacturing. That's the next frontier if we want true self-reliance in electronics. The SPECS scheme is a good start though.
N
Neha P.
As someone in the electronics industry, I can confirm the changes are real! We've gone from assembling to actual manufacturing. The component ecosystem is developing fast. Exciting times ahead!
V
Vikram D.
The reduction from 35% to 5% in AC imports shows how effective targeted policies can be. Hope this success extends to other appliance categories too. Maybe EVs next?

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Your email won't be published

Tags:
Electronics Manufacturing Make in India Mobile Phones India Manufacturing PLI Scheme Global Supply Chain
You May Like!