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

The Economic Survey 25-26, tabled on January 29, highlights that India's electronics sector has emerged as a cornerstone of the nation’s industrial transformation and global trade strategy.

The sector is currently witnessing a profound structural transformation. Moving from a domestic-focused industry, it ascended from the seventh-largest export category in FY22 to the third-largest and fastest-growing in FY25. 

This momentum has remained robust; in the first half of FY26, electronics exports reached $22.2 billion (approximately Rs 2.04 lakh crore), placing the sector on a trajectory to become India’s second-largest exported item.

The mobile manufacturing milestone

The driving force behind this expansion is the mobile manufacturing segment, which has seen an unprecedented, nearly 30-fold increase in production value. The sector’s value rose from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25.

This growth has fundamentally altered India's global standing. Once a net importer, India is now the world’s second-largest mobile phone manufacturer. The manufacturing infrastructure has expanded from just two manufacturing units in 2014 to over 300 units today.

Strategic success through PLI schemes

The Survey attributes this success to a series of strategic government interventions designed to overcome barriers like high capital requirements and the need for cutting-edge technology. Central to this are the Production Linked Incentive (PLI) Schemes, which have acted as a catalyst for both domestic and global manufacturers:

PLI for Large-Scale Electronics Manufacturing

Launched in April 2020, the scheme has generated a cumulative production of approximately Rs 9.34 lakh crore, exports of Rs 5.12 lakh crore and investment of Rs 13,759 crore, as of September 2025.

PLI scheme 2.0 for IT Hardware

Launched in May 2023, the PLI schemes for IT Hardware have realised a cumulative production of Rs 14,462.7 crore and investments of Rs 892.47 crore as of September 2025.

SPECS

Notified in April 2020, it provides a 25% financial incentive on capital expenditure for the downstream value chain. As of September 2025, 58 applications have been approved with a total proposed investment of Rs 22,081 crore.

Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem 

Under the Rs 76,000 crore programme, the India Semiconductor Mission (ISM) has approved landmark projects, including Micron’s ATMP (Assembly, Testing, Marking and Packaging) facility, Tata Electronics’ Semiconductor Fab, one compound semiconductor fab and various other packaging facilities, as a first step towards high-tech self-reliance. 

In addition, 24 projects for financial support and 100 companies for design infrastructure support for chip design to be implemented by domestic start-ups/ MSMEs have been approved.

By leveraging these schemes, India has not only boosted its export volumes but has also integrated more effectively into Global Value Chains (GVCs). 

The sector’s evolution from "Swadeshi" to strategic resilience is building a future where India is an indispensable hub for global electronics excellence.