India’s Electronics Production Hits $116 Billion, Exports Reach $48 Billion in FY26

India’s electronics manufacturing sector has expanded sharply over the past decade, with annual production crossing $116 billion in FY26 and electronics exports reaching $48 billion, according to Union Minister for Electronics and Information Technology Ashwini Vaishnaw.

In an update shared on X, Ashwini Vaishnaw said electronics production has grown nearly sevenfold over the past 10 years, while exports have increased around 11 times. The sector has also moved from being largely focused on assembling finished products to developing a broader domestic manufacturing ecosystem.

The shift is particularly visible in mobile phones. According to Ashwini Vaishnaw, mobile phones did not feature among India’s top 100 export items a decade ago. In FY26, they became the country’s largest exported item.

The government is now looking to deepen the value chain further through the Electronics Component Manufacturing Scheme (ECMS), which focuses on components, sub-assemblies and capital goods used in electronics manufacturing.

The scheme initially targeted around ₹59,000 crore in investment, but approved projects have already crossed ₹69,000 crore as of August 2026. The number of approved companies has also reached 106, against an initial expectation of around 60.

Together, these projects are expected to generate nearly 75,000 direct jobs and around 2.5 lakh total jobs, according to Ashwini Vaishnaw.

Manufacturing activity under the scheme is also beginning to move from approvals to factories. Thirty-eight projects have already started manufacturing, while another 16 are currently under construction or installing machinery.

Ashwini Vaishnaw highlighted the growing range of products and materials now being manufactured in India, including PCBs, enclosures, speakers, antennas, optical transceivers, filters, capacitors, permanent magnets and advanced materials.

The government is also focusing on building domestic capabilities deeper within individual supply chains. In the battery ecosystem, for instance, India is moving beyond manufacturing mobile phone batteries to producing materials such as synthetic graphite, acetylene black and electrolyte additives. Similar efforts are underway around capacitor manufacturing and the materials used to produce them.

The expansion has also changed India’s position in merchandise exports. Ashwini Vaishnaw said electronics has moved from the country’s ninth-largest merchandise export sector to third position in FY26.

The next challenge, however, is to ensure that the growth in manufacturing translates into globally competitive products. Vaishnaw said Indian component manufacturers will need to focus on quality, reliability, cost competitiveness and timely delivery if they are to become preferred suppliers for global manufacturers.

The government is also looking to expand investments in electronics design, materials, precision components, capital equipment and skilled talent.

For businesses and investors, the expanding supply chain could create opportunities across multiple layers of electronics manufacturing. For engineers and professionals, the growth is expected to create opportunities in manufacturing, design and R&D, while the expanding ecosystem could also open new career paths for students entering electronics and advanced manufacturing.

Ashwini Vaishnaw described 2014 as an inflection point for India’s electronics manufacturing journey and said the country has spent the past 12 years building its foundation.