Economic Survey 2025-26: Electronics exports at $22.2 bn, set to be India’s second-largest export

The Economic Survey for 2025-26, presented on January 29, underscores the critical role of India's electronics industry in reshaping the nation's industrial landscape and global trade strategy. This sector is currently undergoing significant structural changes, transforming from a primarily domestic market focus to becoming the third-largest and rapidly expanding export category within just a few years. In the first half of FY26, electronics exports have already reached an impressive $22.2 billion (around ₹2.04 lakh crore), positioning the sector on track to become India’s second-largest export commodity. A significant contributor to this growth is the mobile manufacturing industry, which has experienced an astounding nearly 30-fold increase in production value since FY15, soaring from ₹18,000 crore to ₹5.45 lakh crore by FY25. This remarkable progress has repositioned India from being a net importer to the world's second-largest mobile phone manufacturer, with the number of manufacturing units skyrocketing from a mere two in 2014 to over 300 today. The survey attributes this remarkable success to a series of strategic government initiatives aimed at overcoming challenges such as high capital demands and the necessity for advanced technology. Central to these efforts are the Production Linked Incentive (PLI) Schemes, designed to stimulate both local and international manufacturers. The initial PLI for Large-Scale Electronics Manufacturing, launched in April 2020, has driven cumulative production worth approximately ₹9.34 lakh crore, along with exports totaling ₹5.12 lakh crore and investments of ₹13,759 crore as of September 2025. Moreover, the PLI scheme 2.0 for IT Hardware, introduced in May 2023, has already achieved a cumulative production value of ₹14,462.7 crore alongside investments of ₹892.47 crore by September 2025. The SPECS initiative, which was launched in April 2020, offers a substantial 25% financial incentive on capital expenditure aimed at enhancing the downstream value chain. To date, 58 applications under this scheme have been approved, amounting to a proposed investment of ₹22,081 crore. Additionally, the Modified Programme for the Development of the Semiconductors and Display Manufacturing Ecosystem, backed by a ₹76,000 crore budget, has sanctioned groundbreaking projects including Micron’s ATMP facility and Tata Electronics’ Semiconductor Fab. This program is viewed as a pivotal step toward achieving high-tech self-reliance, with 24 projects receiving financial support and 100 companies designated for design infrastructure support in chip design through domestic startups and MSMEs. Through the implementation of these strategic schemes, India has not only enhanced its export performance but has also effectively integrated into Global Value Chains (GVCs). The transformation of the electronics sector reflects a shift from a focus on local production to one of strategic resilience, positioning India as a vital hub for global electronics excellence.