India is setting an ambitious target to significantly increase domestic value addition in mobile phone manufacturing, aiming for 35-40% from the current 22-23%. S Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY), announced this strategic goal, emphasizing the government's commitment to strengthening the electronics supply chain and enhancing India's role in global manufacturing.
Boosting Domestic Value and Strategic Autonomy
Speaking at the fifth Business Today India@100 Summit, Krishnan clarified that technological self-reliance, or Atmanirbhar Bharat, does not necessitate manufacturing every single component domestically. Instead, the focus is on achieving strategic autonomy, building resilient alternative supply chains, and securing a larger share of the value chain within the country. "The important thing about being Atmanirbhar is about being resilient and about having strategic autonomy," Krishnan stated, underscoring that it doesn't mean "making everything yourself."
The electronics sector in India has witnessed remarkable growth. Government data indicates that electronics production surged from ₹1.9 lakh crore in 2014-15 to an estimated ₹13.11 lakh crore by 2025-26. Over the same period, electronics exports dramatically increased from ₹38,000 crore to ₹4.24 lakh crore, creating nearly 25 lakh jobs. Mobile phones have been a key driver of this expansion, with production rising from ₹18,900 crore to ₹6.27 lakh crore, and exports growing from ₹1,566 crore to ₹2.60 lakh crore, making them India’s largest export product in FY2025-26.
From Assembly to Advanced Components
Initially, India's mobile phone manufacturing focused heavily on assembly, contributing about 15% domestic value addition. This has now grown to 22-23%, with the ultimate goal of reaching 35-40%. Krishnan highlighted the importance of assembly in creating scale and employment, noting that some large electronics facilities employ tens of thousands of workers. He asserted, "You start with scale. You are assembling enough of those products in the country. Then slowly the value addition commences."
The government is now shifting its emphasis towards developing a robust domestic component ecosystem through initiatives like the Electronics Component Manufacturing Scheme (ECMS). Approved in March 2025 with an initial outlay of ₹22,919 crore, the scheme aims to integrate Indian companies into global value chains. The ECMS outlay was further increased to ₹40,000 crore in Budget 2026. To date, 75 applications covering 23 product categories, including printed circuit boards, passive and electromechanical components, subassemblies, and camera modules, have been approved. These projects are projected to attract ₹61,671 crore in investment, generate ₹4.51 lakh crore in production, and create 65,040 direct jobs.
Krishnan stressed that export demand would be the ultimate benchmark for the competitiveness of Indian-made components. "The only way that you can be sure that you are competitive is if what you make can be exported," he remarked, indicating that global acceptance validates cost and quality competitiveness.
Leveraging Mobile Manufacturing for Future Tech
The capabilities honed through mobile phone manufacturing are expected to serve as a foundation for other advanced electronics. India is currently the world's second-largest manufacturer of mobile phones. The precision manufacturing and integration of miniaturized components developed in this sector could be applied to emerging technologies such as augmented reality (AR) and virtual reality (VR) headsets, and smart glasses.
To further scale up production and strengthen supply-chain resilience, the government has also approved a new Mobile Phone Manufacturing Scheme. This initiative, with a budgetary outlay of ₹62,500 crore over five years from FY2026-27 to FY2030-31, aims to improve India's global competitiveness in the sector. Currently, 99.2% of mobile phones used in India are manufactured domestically, with domestic value addition reaching 23% in FY2023-24.
Advancing Semiconductor Production
Beyond mobile components, India is also making strides in semiconductor manufacturing. Krishnan reported that three semiconductor projects are already operational, with another two or three expected to come online by the end of 2026. The government's broader semiconductor program has approved 12 projects, committing ₹1.64 lakh crore in investment. In July 2026, the Union Cabinet approved Semicon 2.0 with an outlay of ₹1,27,500 crore, covering various aspects of semiconductor design, fabrication, advanced packaging, equipment, and materials.
Krishnan affirmed that market demand is a critical factor in project approvals, noting that almost all approved units have existing orders for their manufacturing. Customers are actively visiting these facilities to ensure they meet the required quality standards, signaling strong market interest and confidence.