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India’s Electronics Revolution Under Make in India

Last Updated

26th March, 2025

Date Published

26th March, 2025

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A realistic digital painting illustrating the electronics revolution in India.

Context:

Released on March 26, 2025, by the Press Information Bureau, this document outlines the transformative impact of the Make in India initiative on India’s electronics sector. Highlighting a shift from import dependency to self-reliance, it details the growth in mobile phone production, exports, and the emerging semiconductor ecosystem, positioning India as a global manufacturing hub by 2026.

Key Information Points:

  • Electronics Production Growth: Domestic electronics production rose from ₹1.9 lakh crore in FY 2014-15 to ₹9.52 lakh crore in FY 2023-24, with projections to hit USD 300 billion by 2026.
  • Mobile Phone Dominance: India is the world’s second-largest mobile phone producer, with local manufacturing units increasing from 2 in 2014 to over 300 by 2024.
  • Local Manufacturing Surge: In 2014-15, only 26% of mobile phones sold in India were locally made; by December 2024, this reached 99.2%.
  • Mobile Production Value: Manufacturing value of mobile phones grew from ₹18,900 crore in FY14 to ₹4,22,000 crore in FY24, with over 325-330 million units produced annually.
  • Export Boom: Mobile phone exports jumped from ₹1,566 crore in 2014-15 to ₹1.2 lakh crore in 2023-24 (77-fold increase), surpassing ₹1,29,000 crore by 2024.
  • Job Creation: The electronics sector generated 12 lakh direct and indirect jobs over the past decade.
  • Make in India Initiative: Launched in 2014, it aims to transform India into a global manufacturing hub by fostering investment, innovation, and infrastructure development.
  • Production Trends (2021-24):
    • FY 2021-22: Production ₹6,40,810 crore, Imports ₹5,49,713 crore, Exports ₹1,16,895 crore.
    • FY 2022-23: Production ₹8,25,000 crore, Imports ₹6,20,752 crore, Exports ₹1,89,934 crore.
    • FY 2023-24: Production ₹9,52,000 crore, Imports ₹7,27,664 crore, Exports ₹2,41,157 crore.
  • Phased Manufacturing Programme (PMP): Notified in 2017, it promotes domestic value addition in mobile phones, shifting from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) assembly.
  • Production Linked Incentive (PLI) Scheme: Introduced April 1, 2020, offers 3-6% incentives on incremental sales for five years, targeting mobile phones and electronic components.
  • PLI Impact (as of February 2025):
    • Investment: ₹10,905 crore.
    • Production: ₹7,15,823 crore.
    • Exports: ₹3,90,387 crore.
    • Jobs: 1,39,670 direct jobs.
  • PLI Budget Allocation: Increased from ₹5,747 crore (2024-25 revised estimate) to ₹8,885 crore in 2025-26.
  • PLI Goals: Attracts investment, integrates advanced technology, boosts efficiency, and enhances global competitiveness.
  • Semiconductor Ecosystem: Market projected to grow at 13%, reaching ₹8,95,134 crore (USD 103.4 billion) by 2030, per India Electronics and Semiconductor Association (IESA).
  • Semicon India Program: Launched in 2021 with ₹76,000 crore outlay, supports semiconductor fabrication, packaging, and testing ecosystems.
  • Semiconductor Projects Approved (2024):
    • Tata Electronics (Semiconductor Fab): ₹91,526 crore investment, 50,000 wafer starts per month, partnered with PSMC, Taiwan.
    • Tata Electronics (OSAT): ₹27,120 crore, 48 million units per day using indigenous packaging tech.
    • CG Power (OSAT): ₹7,584 crore, 15.07 million units per day, joint venture with Renesas (USA) and STARS (Thailand).
    • Kaynes Technology (OSAT): ₹3,307 crore, 6.33 million chips per day, at Sanand, Gujarat, with tech from ISO and Aptos.
  • Total Semiconductor Investment: Nearly ₹1.52 lakh crore across five projects.
  • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): Offers 25% capital expenditure incentive to strengthen the electronics value chain.
  • Fiscal Support Agreement (March 2025): India Semiconductor Mission, Tata Electronics, and Tata Semiconductor Manufacturing signed an agreement for India’s first commercial semiconductor fab in Dholera, Gujarat, enhancing technological self-reliance.
  • Conclusion: India’s electronics growth, driven by Make in India, showcases a shift to self-reliance, with robust policies and a skilled workforce aiming for a USD 300 billion industry by 2026.

Key Terms:

  • Make in India: Initiative to transform India into a global manufacturing hub launched in 2014.
  • Phased Manufacturing Programme (PMP): Scheme to boost domestic value addition in mobile phone production.
  • Production Linked Incentive (PLI): Incentive scheme offering 3-6% on incremental sales to boost manufacturing.
  • Semicon India Program: ₹76,000 crore initiative to develop India’s semiconductor ecosystem.
  • Outsourced Semiconductor Assembly and Test (OSAT): Facilities for assembling and testing semiconductor chips.
  • Semi Knocked Down (SKD): Partially assembled products shipped for final assembly.
  • Completely Knocked Down (CKD): Products shipped as individual components for full assembly at destination.