India’s Electronics manufacturing jumps 146%: Report

India’s Electronics manufacturing jumps 146%: Report is profiled by BTW Media because public-source evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

Production boom: India’s Electronics output under the PLI scheme jumped from ₹2.13 lakh crore in FY21 to ₹5.45 lakh crore by FY25. Disbursements gaining pace: After initially slow payouts, annual incentives reached ₹10,112 crore in FY25 with further increases expected in FY26. What happened: The surge highlights India’s rising role in global electronics manufacturing India’s electronics manufacturing sector posted a striking 146% increase in production under the government’s Production Linked Incentive (PLI) scheme, rising from ₹2.13 lakh crore in Financial Year (FY) 2021 to ₹5.45 lakh crore in FY25, according to data from CareEdge Ratings. PLI is a Government of India scheme designed to boost domestic manufacturing and reduce import dependence. Mobile phone manufacturing has been a key contributor to this surge, benefiting from significant foreign direct investment (FDI) inflows of around USD 4 billion, with approximately 70% channelled to companies participating in the PLI programme. The scheme spans 14 sectors with a total budgetary outlay of ₹1.97 lakh crore, but incentive disbursements initially lagged production gains cumulative payouts up to September 2025 totalled ₹23,946 crore, representing roughly 12% of the envisaged outlay. However, incentive payments are accelerating. After rising from ₹2,968 crore in FY23 to ₹6,753 crore in FY24, payouts in FY25 climbed to ₹10,112 crore, the highest annual figure thus far, and early data from FY26 suggests a strong public-source evidence with ₹4,113 crore already released in the first half of the year. Beyond electronics, the PLI scheme allocates funds across sectors including automotive components, solar PV, ACC batteries, IT hardware and pharmaceuticals reflecting a broader government push to strengthen domestic manufacturing and supply chains. Also Read: India heralds $4.6B investment in home-grown electronic components under ECMS Also Read : Thailand invests $2B in electronics to boost tech growth Why it’s important PLI scheme was first launched by India in 2020 as part of its strategy to boost domestic manufacturing and attract investment under the Atmanirbhar Bharat initiative. In terms of investment, the total approved outlay for the PLI scheme stands at around ₹1.97 lakh crore, spread over multiple years and sectors. Since its launch, the scheme has attracted significant domestic and foreign direct investment, with cumulative investments reported at close to ₹2 lakh crore and incremental production running into several lakh crore rupees. The scheme is also designed to generate large-scale employment, boost exports, and support the development of local supplier ecosystems. The substantial rise in electronics production under the PLI programme underscores India’s growing competitiveness as a global manufacturing hub, particularly in high‑value mobile phone assembly. This aligns with the government’s strategy to reduce import dependence and attract global investment into domestic industry. The improving trend in incentive disbursements could further encourage capacity expansion and investment, helping to sustain momentum as supply chains evolve. Strong production figures combined with increasing payouts may also support job creation, export growth and deeper integration into global value chains, areas that policymakers have identified as central to long‑term economic resilience. Electronics output growth also fits within a longer‑term trend: India’s total electronics production expanded from around ₹1.9 lakh crore in 2014‑15 to approximately ₹11.3 lakh crore in 2024‑25, with exports growing in tandem an indicator of the sector’s rising global footprint.