New Delhi, Aug 19: India’s electronics manufacturing sector is entering a new stage of development, with the focus now shifting from simply expanding production to building large-scale, high-quality and globally competitive manufacturing capabilities, Union Electronics and IT Minister Ashwini Vaishnaw has said.
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The sector has recorded a remarkable transformation over the past decade. Electronics production crossed $116 billion in FY26, while exports reached $48 billion, with production growing nearly seven times and exports about eleven times during the period.
Vaishnaw said the foundation for India’s electronics manufacturing journey has been established, but the next phase will require greater scale, improved quality and deeper integration with global supply chains.
One of the biggest changes is the expansion of domestic component manufacturing. The government’s Electronics Component Manufacturing Scheme (ECMS) has attracted significant industry interest, with approved investments reaching around Rs 69,000 crore. Several companies are now moving towards production across a range of critical components.
The latest approvals are expected to further strengthen the ecosystem. A total of 106 projects approved under the scheme are projected to generate direct employment for around 75,000 people, with the wider electronics ecosystem expected to create employment opportunities for nearly 2.5 lakh people once the projects become operational.
The expansion is also helping India reduce its dependence on imported components. Domestic manufacturing has already achieved significant progress in areas such as enclosures, anode materials, optical transceivers and relays, while production is meeting a substantial share of domestic demand for lithium-ion cells, laminates and connectors.
The next challenge, however, is to ensure that Indian products can compete on quality, reliability, cost and technological sophistication in international markets.
That will require continued investment in research and development, advanced machinery, skilled workers, product design and supply-chain capabilities. It will also be important for Indian manufacturers to move further up the value chain rather than remaining concentrated in assembly activities.
The opportunities extend well beyond smartphones. Electronics are increasingly critical to sectors including automobiles, telecommunications, defence, artificial intelligence, healthcare, consumer technology and industrial equipment.
The growth of the sector is consequently creating opportunities for engineers, technicians, entrepreneurs and young technology professionals while strengthening India’s position in global manufacturing.
India’s electronics story has therefore moved beyond the question of whether the country can manufacture at scale. The more important question now is whether it can manufacture at global standards, develop critical technologies domestically and build supply chains capable of competing worldwide.
With rising investment, expanding component production and growing exports, the sector is increasingly becoming an important pillar of India’s manufacturing and economic growth story
