New Delhi – India is setting an ambitious target to increase the domestic value addition in mobile phone manufacturing to 35-40%, a substantial leap from the current 22-23%. This goal was announced by S Krishnan, Secretary, Ministry of Electronics and Information Technology (MeitY), at the Business Today India@100 Summit.
Deepening India's Role in Global Electronics
Krishnan emphasized that this push is part of a broader strategy to strengthen India's electronics supply chain and elevate its position in global manufacturing. He clarified that technological self-reliance, or 'Atmanirbhar Bharat', does not imply manufacturing every single component domestically, but rather achieving strategic autonomy and building resilient alternative supply chains.
“The important thing about being Atmanirbhar is about being resilient and about having strategic autonomy. It does not necessarily mean a situation where you are making everything yourself,” Krishnan stated.
Significant Growth in Electronics Production and Exports
Government data underscores the remarkable growth in India's electronics sector. Production surged from ₹1.9 lakh crore in 2014-15 to ₹13.11 lakh crore in 2025-26. Similarly, electronics exports saw a dramatic rise from ₹38,000 crore to ₹4.24 lakh crore during the same period. This expansion has also created nearly 25 lakh jobs.
Mobile phones have been a key driver of this growth, with production increasing from ₹18,900 crore to ₹6.27 lakh crore, and exports jumping from ₹1,566 crore to ₹2.60 lakh crore, making them India’s largest export product in FY2025-26.
From Assembly to Advanced Component Manufacturing
While assembly has been crucial for generating scale and employment, with some facilities employing tens of thousands, the government is now shifting its focus towards deeper value addition. The Electronics Component Manufacturing Scheme (ECMS), initially approved in March 2025 with an outlay of ₹22,919 crore and later increased to ₹40,000 crore in Budget 2026, aims to foster a robust domestic component ecosystem.
So far, 75 applications covering 23 product categories, including printed circuit boards, camera modules, and passive components, have been approved under ECMS. 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 highlighted that export demand would be the ultimate test of competitiveness for 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.
Mobile Manufacturing as a Foundation for Future Tech
The capabilities developed 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. Precision manufacturing and the integration of miniaturized components honed in this sector could be applied to emerging technologies like AR/VR headsets and smart glasses.
A new Mobile Phone Manufacturing Scheme, with a ₹62,500 crore outlay for five years (FY2026-27 to FY2030-31), has also been approved to further scale production and enhance global competitiveness. Currently, 99.2% of mobile phones used in India are domestically manufactured, with domestic value addition at 23% in FY2023-24.
Boosting India's Semiconductor Ecosystem
In parallel, India is making strides in semiconductor manufacturing. Three semiconductor projects are already operational, with another two or three anticipated by the end of 2026. The government’s semiconductor program has approved 12 projects with a committed investment of ₹1.64 lakh crore. The Union Cabinet's approval of Semicon 2.0 in July 2026, with an outlay of ₹1,27,500 crore, further solidifies support for semiconductor design, fabrication, advanced packaging, equipment, and materials.
“We are fairly clear and almost all the units, and every unit which has been approved already, has orders against which they are manufacturing,” Krishnan confirmed, emphasizing the market-driven approach to these approvals.
This comprehensive strategy aims to secure India’s position in the global electronics value chain, fostering resilience and strategic autonomy without isolating the country from international supply networks.