Electronics Exports Surge, Set to Become India’s Second-Largest Segment

India’s electronics sector is rapidly emerging as a major export powerhouse and is on track to become the country’s second-largest export category, according to the Economic Survey 2026 tabled in Parliament on January 29. The Survey highlights a sharp rise in electronics exports, which moved from being the seventh-largest export segment in FY22 to the third-largest and fastest-growing by FY25. This strong momentum has continued into the first half of FY26, with electronics exports reaching $22.2 billion, signalling a major structural shift in India’s manufacturing and trade profile.

The rapid growth reflects India’s increasing focus on domestic production and export-led manufacturing. Higher output, expanding capacity and deeper integration with global value chains have helped electronics climb the export rankings. The Survey notes that this shift marks a departure from import dependence and positions electronics as a long-term growth engine for the Indian economy.

Mobile phone manufacturing has played a central role in this transformation. Over the past decade, the value of mobile phone production has grown nearly 30 times, rising from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25. India has also emerged as the world’s second-largest mobile phone manufacturer, supported by a rapid expansion in manufacturing capacity. The number of mobile phone manufacturing units has increased from just two in 2014 to over 300 today, backed by large investments in assembly, components and supply-chain infrastructure.

Government policy support has been a key driver of this growth. The Production-Linked Incentive scheme for large-scale electronics manufacturing has generated production worth Rs 9.34 lakh crore, exports of Rs 5.12 lakh crore and investments of Rs 13,759 crore as of September 2025. Additional schemes for IT hardware, electronic components and manufacturing clusters have further strengthened localisation and infrastructure.

Alongside this, India’s semiconductor push under the Rs 76,000 crore India Semiconductor Mission is building advanced capabilities in chip fabrication, packaging and design. Together, these efforts are expected to sustain export growth, reduce import dependence and firmly establish electronics as one of India’s most important export sectors.

Source: Moneycontrol