According to the Union Minister of State for Electronics and IT, India’s electronics sector has undergone a remarkable transformation and reimagining under the Prime Minister of India. In 2014, India had to import 82% of all smartphones, but now the country manufactures nearly 100%.
This shift has propelled smartphones to become the fifth-highest exported product from India, surpassing Rs 1 lakh crore in the ‘Techade,’ and positioning India as a significant player in the global electronics industry in the future. The minister highlighted India’s emergence as a trusted partner in global electronics supply chains.
The minister emphasized that India is actively striving to grow its share and presence in global supply chains amid the post-Covid shift. In 2014, India’s electronics manufacturing represented less than Rs 1 lakh crore. However, the target is to reach Rs 24 lakh crore by 2026, marking a 24-fold increase slightly over a decade. The minister pointed out that in 2014, India did not export smartphones, but this year, smartphones have become the fifth-highest exported product, exceeding Rs 1 lakh crore.
The favorable government policies and the production-linked incentive (PLI) scheme have created a good environment for India’s electronics industry. With the support of a technology giant, India is expected to surpass Rs 1,20,000 crore in mobile exports in the current fiscal year. In the previous fiscal year, 2022-2023, smartphone exports from India amounted to an impressive Rs 90,000 crore, as stated by the Electronics Association in India. The minister described the ambition and plan as “broadening and deepening” the electronics ecosystem to foster the development of a robust component ecosystem in India.
The recent announcement of the production-linked incentive (PLI) scheme for IT hardware, with a budgetary outlay of Rs 17,000 crore, is expected to facilitate the manufacture of laptops, data centers, and server infrastructure in India. This scheme is estimated to lead to a total production worth about Rs 3.35 lakh crore, an additional investment of Rs 2,430 crore in electronics manufacturing, and the generation of 75,000 additional direct jobs.
Highlighting the significant growth of India’s digital economy, the minister added that its contribution to the overall economy has increased from around 4% in 2014 to 10% today. Due to the efforts and energy of India’s young population, the digital economy is expected to reach 20% of GDP by 2026.