India’s Electronics Manufacturing expands significantly in last 11 years

**Executive Summary** This document details the significant expansion of India's electronics manufacturing sector over the past 11 years, driven by government initiatives like Make in India and Atmanirbhar Bharat. The report highlights substantial growth in production and exports, supported by the Electronics Manufacturing Clusters (EMC 2.0) scheme, which aims to establish a complete manufacturing ecosystem. Key projects under EMC 2.0, including a cluster in Ranjangaon, Pune, and a Common Facility Centre in Pimpri, are progressing towards completion. **Key Points / Main Content** * **Sectoral Growth:** * Production of electronics goods has increased six times, from approximately ₹1.9 Lakh Crore in 2014-15 to an estimated ₹12 Lakh Crore in 2024-25. * Export of electronics goods has seen an eight-fold increase, rising from ₹38 thousand Crore to approximately ₹3.3 Lakh Crore. * Mobile manufacturing units have grown from 2 to 300, a 150-fold increase. * Production of mobile phones has surged 28 times, from ₹18 thousand Crore to ₹5.45 Lakh Crore. * Export of mobile phones has increased 127 times, from ₹1,500 Crore to ₹2 Lakh Crore. * Imports of mobile phones have drastically reduced, from 75% of total demand to 0.02%. * **Electronics Manufacturing Clusters (EMC 2.0) Scheme:** * Notified in April 2020, the scheme provides world-class infrastructure, logistics, and plug-and-play facilities for electronics manufacturing. * This includes ready industrial plots and Ready Built Factory (RBF)/Plug-and-Play facilities. * **Key EMC 2.0 Projects:** * **Ranjangaon Cluster (Pune, Maharashtra):** * Project cost of ₹492.85 crore, covering 297 acres. * Expected to attract ₹2,000 crore of investment and generate approximately 5,000 jobs. * 70% of the approved Grant-in-Aid (GIA) of ₹145.59 crore has been released. * Remaining funds contingent on achieving milestones and fulfilling terms. * Approximately 80% of infrastructure is completed, with anchor units IFB Refrigeration Ltd. and Starion HK India already in production. * **Common Facility Centre (CFC) (Pimpri Industrial Area, Pune):** * Project cost of ₹67 crore. * Will offer shared facilities for design, prototyping, testing, and measurement to support regional electronic industries. * **Project Monitoring:** * Progress is monitored through quarterly reports, review meetings, and site visits. * The Project Review Committee (PRC) and Governing Council (GC) periodically review progress. * These committees include representatives from various Ministries, State Governments, implementing agencies, and industry. * **Source of Information:** * The information was provided by Shri Ashwini Vaishnaw, Union Minister for Ministry of Electronics and Information Technology, in a written reply in the Lok Sabha. **Impact Analysis** **Electronics Manufacturing Companies** * **Impact:** Increased production capacity, export opportunities, and reduced reliance on imports due to improved infrastructure and ecosystem development under EMC 2.0. Access to shared facilities for R&D and prototyping through CFCs. * **Action Required:** Leverage the enhanced infrastructure and facilities provided by EMC 2.0 and CFCs to scale up production, innovate, and expand market reach. **Government Ministries and Agencies** * **Impact:** Achievement of national objectives related to electronics manufacturing growth, job creation, and 'Make in India' / 'Atmanirbhar Bharat' initiatives. Enhanced oversight and coordination required for project implementation and monitoring. * **Action Required:** Continue to facilitate project development, monitor progress through established committees, ensure timely release of funds based on milestones, and address any challenges faced by implementing agencies. **Investors (Domestic and International)** * **Impact:** Increased confidence in India's electronics manufacturing sector due to evidence of significant growth, government support, and development of a conducive ecosystem. Potential for higher returns on investment. * **Action Required:** Evaluate investment opportunities within India's expanding electronics manufacturing sector, particularly in projects supported by initiatives like EMC 2.0. **Industry Stakeholders (including anchor units)** * **Impact:** Direct beneficiaries of the developed infrastructure and ecosystem, enabling smoother operations and potential for expansion. Contribution to job creation and skill development in the region. * **Action Required:** Continue production and contribute to the growth of the electronics manufacturing sector, adhere to project guidelines and terms for fund disbursement, and collaborate with other stakeholders.

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