Despite geopolitical tensions, manufacturing in India has done exponentially well, with smartphones leading the trail. According to data shared by CareEdge Ratings, India’s production has surged by 146% since 2021. The Performance Linked Incentive (PLI) scheme played a significant role in boosting electronics manufacturing from Rs 2.13 lakh crore in the Financial Year 2021 to Rs 5.45 lakh crore in the Financial Year 2025.
Additionally, the boost in production was aided by USD 4billion in FDI, where 70% was to PLI beneficiaries. Apart from economic benefits, the accelerated production has triggered a massive socio-economic multiplier effect. The electronics sector has been a dominant contributor to the 9.5 lakh jobs generated across all PLI schemes, providing significant direct and indirect employment. Simultaneously, electronics have climbed to become one of India’s top export categories. By shifting from an importer to a “net exporter” of mobile phones, India is successfully narrowing its trade deficit and reducing its long-term dependency on imports from neighbouring manufacturing hubs.
While the 146% jump is a historic achievement, the roadmap ahead focuses on “Deep Localisation.” The government and industry leaders are now pivoting toward high-value components, including semiconductor packaging and display manufacturing. As of January 2026, this momentum positions India to reach its goal of a $300 billion electronics production ecosystem, solidifying its role as a critical alternative in the global “China Plus One” supply chain strategy.
