**Subject:** Assessment of India's Electronic Manufacturing Target
**Summary:**
This document addresses Lok Sabha Unstarred Question No. 2797, concerning India's progress towards achieving its target of $250-300 billion in local electronic manufacturing by 2026. The response, provided by the Minister of State for Electronics and Information Technology, acknowledges significant growth in the Indian electronics manufacturing sector over the past 11 years, attributing this expansion to the "Make in India" and "Atmanirbhar Bharat" programs.
Key data points illustrating this growth include:
* **Production of electronics goods:** Increased six-fold, from ₹1.9 Lakh Cr in 2014-15 to ₹11.3 Lakh Cr in 2024-25.
* **Export of electronics goods:** Increased eight-fold, from ₹0.38 Lakh Cr to ₹3.3 Lakh Cr.
* **Mobile manufacturing units:** Increased 150 times, from 2 units to 300 units.
* **Production of mobile phones:** Increased 28 times, from ₹0.18 Lakh Cr to ₹5.5 Lakh Cr.
* **Export of mobile phones:** Increased 127 times, from ₹0.01 Lakh Cr to ₹2 Lakh Cr.
* **Mobile phone import dependence:** Decreased significantly from 75% of demand to 0.02% of total units.
The response recognizes the challenges associated with scaling up domestic manufacturing, including the need for high capital investment, large-scale production, longer gestation periods, advanced technologies, and specialized skillsets. To address these challenges, the government has implemented several strategic initiatives:
* Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing
* Production Linked Incentive (PLI) Scheme for IT Hardware
* Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
* Electronics Manufacturing Clusters (EMC) and EMC 2.0 Scheme
* Public Procurement Preference to Make in India Order 2017
* Reforms in taxation, including rationalization of tariff structure and exemption on basic custom duty on capital goods.
* 100% Foreign Direct Investment (FDI) allowed in electronics manufacturing, subject to applicable laws and regulations.
The Ministry of Electronics and Information Technology is actively working to strengthen the domestic electronics ecosystem to enhance self-reliance and global competitiveness.
Key Entities Referenced
Ministry of Electronics and Information Technology: A ministry within the Government of India responsible for electronics and information technology.
SHRI RAMASAHAYAM RAGHURAM REDDY: A member of Lok Sabha who raised a question about the target of local electronic manufacturing.
SHRI JITIN PRASADA: The Minister of State for Electronics and Information Technology who provided the answer to the question.
Make in India: An initiative by the Government of India to encourage companies to manufacture their products in India.
Atmanirbhar Bharat: An initiative by the Government of India promoting self-reliance.
Production linked incentives PLI: Government incentives to boost domestic manufacturing.
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors SPECS: A scheme by the Government of India to promote the manufacturing of electronic components and semiconductors.
Electronics Manufacturing Clusters EMC: A scheme by the Government of India to develop Electronics Manufacturing Clusters.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 2797
TO BE ANSWERED ON: 06.08.2025
TARGET OF LOCAL ELECTRONIC MANUFACTURING
2797. SHRI RAMASAHAYAM RAGHURAM REDDY:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) whether India is on track to achieve the target of local electronic manufacturing of $250-$300
billion by 2026;
(b) if so, the details and projections thereof, year-wise; and
(c) if not, the details of challenges being faced in achieving this target?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (c): Electronics manufacturing in India has expanded significantly in the last 11 years,
driven by Make in India and Atmanirbhar Bharat program. The Government is actively
strengthening the domestic electronics ecosystem to boost self-reliance and global
competitiveness.
Value addition by electronics manufacturing units in India has also increased considerably in
recent years. It can be seen from the following statistics:
# 2014-15 2024-25 Remarks
Production of 1.9 Lakh Cr 11.3 Lakh Cr Increased 6 times
electronics goods (Rs.)
Export of electronics 0.38 Lakh Cr 3.3 Lakh Cr Increased 8 times
goods
Mobile manufacturing 2 units 300 units Increased 150 times
units
Production of mobile 0.18 Lakh Cr 5.5 Lakh Cr Increased 28 times
phones (Rs.)Export of mobile phones 0.01 Lakh Cr 2 Lakh Cr Increased 127 times
(Rs.)
Mobile phones imported 75% of the demand 0.02% of the demand
(% of total units)
The Government is also conscious of the requirement of high capital, scale of production, higher
gestation period, latest technologies and skillsets for scaling up domestic manufacturing. Various
strategic initiatives undertaken to address these are as follows:
● Production linked incentives (PLI) for large scale electronics manufacturing
● Production linked incentives (PLI) for IT hardware
● Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors
(SPECS)
● Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme
● Public Procurement (Preference to Make in India) Order 2017 to prioritize domestically
manufactured products in public procurement
● Reforms in taxation including rationalization of tariff structure, exemption on basic custom
duty on capital goods, etc.
● Allowing 100% FDI in electronics manufacturing, subject to applicable laws / regulations
****