Delhi, Nov 5:Electronics and semiconductors are foundational industries: Electronics and semiconductors are foundational industries. They are important for smooth functioning of nearly every sector of economy and have large scale impact on lives of citizens, said Union Minister for Electronics and Information Technology Ashwini Vaishnaw in Rajya Sabha
Government of India’s electronics and semiconductor policy is based on the Hon’ble Prime Minister’s vision of Atma Nirbhar Bharat and Make in India. Government has adopted a planned and methodical approach to increase electronic manufacturing across the entire value chain including semiconductor.
PLI for large scale electronics: In 2020, Government launched Production linked scheme (PLI) for large scale electronics manufacturing. The target segment included mobile phones and certain specified components. The scheme has attracted investment of Rs 14,065 Cr.
PLI for IT hardware: To target manufacturing of IT Hardware, Government launched PLI for IT Hardware for promoting manufacturing of laptop, tablets, server and Ultra small form factor (USFF) devices. PLI for IT hardware have attracted investment of Rs 846 Cr till date.
Additionally, Government has brought in multiple reforms in taxation, customs duty, FDI, etc. to facilitate electronics manufacturing.
India has emerged as a significant electronics manufacturer: As a result of these policy efforts, electronics manufacturing has grown almost six (6) times in last 11 years. It has increased from Rs 1.9 lakh Cr in 2014-15 to Rs 11.32 lakh crore in 2024-25.
Growth in mobile manufacturing: In last 11 years, total number of mobile manufacturing units have increased from 2 to more than 300. Since the launch of PLI for LSEM, Mobile manufacturing has increased from 2.2 Lakh Cr in 2020-21 to 5.5 Lakh Cr.
Growth in electronics exports: Electronics exports has grown eight (8) times from Rs 38 thousand Cr in 2014-15 to Rs 3.26 lakh Cr in 2024-25. Electronics is now the third largest export category.
Mobile exports have increased from about 22 thousand Cr to more than 2.2 Lakh Cr.Industry estimates that electronics sector now provides employment to approximately 25 Lakh people.
To further deepen the value chain, Government launched ECMS scheme in 2025. The scheme focuses on promoting domestic manufacturing of Printed Circuit Board, electrical and mechanical components, camera modules, etc. Against the estimated investment proposals of Rs 59,350 Cr, Government has received investment proposals of Rs 1.15 lakh Cr.
Building on the success of electronics manufacturing, Government of India launched program for development of semiconductors in 2022. Government is focused on developing the entire ecosystem of semiconductors which includes - designing, fabrication, assembly, testing and packaging. Government is also focused on developing skills and talent required for the semiconductor industry.
In less than 3 years, ten (10) units have been approved with cumulative investment of 1.6 Lakh Cr. These units include silicon fab, Silicon Carbide fab, advanced packaging, memory packaging, etc. These would cater to chip requirements of sectors such as consumer appliances, industrial electronics, automobiles, telecommunications, aerospace, and power electronics etc.
To leverage India’s strength in chip design, Government launched Design Linked Incentive (DLI) Scheme. Support has been provided for 24 chips and SoCs for satellite communication, drones, surveillance camera, Internet of Things (IoT) devices, LEDs driver, AI devices, telecom equipment, smart meter, etc.
To encourage India’s young engineers, Government is providing latest design tools to 394 universities and start-ups. Using these tools, chip designers from more than 46 universities have designed and fabricated the chips using these tools at Semiconductor Labs, Mohali.Almost all major semiconductor design companies have set up design centers in India. Most advanced chips such as 2 nm chips are now being designed in India by Indian designers.
Encouraged by Government policies and growth of electronics manufacturing in India, the entire ecosystem is now getting developed. Companies involved in specialised gases, materials, components, warehousing, etc. are scaling up their operations in India. Companies involved in making tools for electronics and semiconductor manufacturing are expanding their operations.
Electronics manufacturing supply chain are global and include many companies and countries. Government policies are aimed at developing the entire supply chain in the country.
Government’s policies for domestic content requirement, BIS certification etc. for re-sale of imported electronic products in the country including taxation policies are aimed at promoting domestic electronics manufacturing.
As per the Directorate General of Commercial Intelligence and Statistics (DGCIS) data, the import of electronic goods during FY 2024–25 was 98.6 billion dollars, while export was approx 38.5 billion dollars.
Due to these concerted policy actions of the Government, India is emerging as a trusted global partner for electronic and semiconductor manufacturing
