The world’s fastest-growing industry, Electronics System Design and Manufacturing (ESDM) continues to transform lives, businesses, and economies across the globe. India is expected to become a $ 1 Tn digital economy by FY26. Currently, the electronics market in India is valued at $ 140 Bn with domestic production accounting for 62%.

Technology transitions such as the rollout of 5G networks and IoT are driving the accelerated adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the electronics devices market and will undoubtedly usher in a new era for electronic products.

India’s domestic production is expected to reach $ 300 Bn by FY26
At present, India’s domestic production has increased at a CAGR of 15% from $ 43 Bn in FY17 to $ 87 Bn in FY22
The country's electronics export is expected to reach $ 120 Bn by FY26.
The export of electronic goods from India has increased from $ 5 Bn in FY17 to $ 15 Bn in FY22, growing at a CAGR of 22%.
96% reduction in data cost from INR 268 per GB in 2014 to INR 10 per GB in 2022.
100% FDI is allowed under the automatic route. In the case of defence electronics, FDI up to 49% is allowed through automatic route and beyond 49% requires government approval.

India aims for electronics manufacturing worth $300 bln by FY26

New Delhi: India aims to achieve electronics manufacturing worth $300
billion by FY26 as the country aspires to become a 81 trillion economy by
2025. As per Economic Survey 2022-23, the domestic. electronics
industry was valued at $118 billion as of FY20 and the industry continues
its growth path, led by mobile phones, consumer electronics and
industrial electronics.

As per data, in FY 23 (April-November, electronics exports grew in
13.8%, highest in the last six years. With robust growth, India aims to
achieve 81.20 billion of electronics exports by FY 26.
“The domestic electronics industiy, as of FY20, is valued at $118 billion.
India aims to reach $300 billion worth of electronics manufacturing and
$120 billion in exports by FY26, supported by the vision of a 81 trillion
digital economy by 2025,” the survey said.
The major drivers of growth in this industry are mobile phones,
consumer electronics, and industrial electronics. In the mobile phone
segment, India has become the second-largest mobile phone
manufacturer globally, With the production of handsets going up from 6
crore units in FY15 to 31 crore units in FY22. “These numbers are
expected to improve as more domestic and global players set up and
expand their bases in India,” the survey said.

Two major global and domestic players in electronic manufacturing
services have already embraced the production linked incentive (PLI)
scheme. The scheme willl help many more domestic. players to attain
economies of scale in production through localising. “Hence, this Will
further enhance export con: W E? :5) increase India’s
participation in the global value chain,” the survey said.