New growth phase for India's electronics manufacturing: Vaishnaw

Union Minister Ashwini Vaishnaw announced India's electronics manufacturing is entering a new phase, moving from assembly to deep supply chains. Production has hit USD 116B, with exports at USD 48B under the 'Make in India' initiative.

India's electronics manufacturing sector is entering a new phase of growth, with the focus shifting from assembling finished products to developing deeper domestic supply chains spanning components, materials and capital equipment, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said.

Decade of Growth Under 'Make in India'

In a post on X, Vaishnaw highlighted the rapid expansion of the sector under the Make in India initiative, saying, "The last decade of Make in India has seen electronics manufacturing emerge as a major sector in India." He said electronics production crossed USD 116 billion in FY26, while electronics exports touched USD 48 billion. Over the past decade, production has grown nearly seven-fold and exports 11 times.

Vaishnaw said India's strategy began with assembling finished products, particularly mobile phones, as large-scale production helped create demand for modules, components and eventually materials and capital equipment. Mobile phones, which did not feature among India's top 100 exports a decade ago, have now emerged as the country's largest exported item.

Next Phase: Deepening the Supply Chain

The next phase is focused on strengthening the component and materials ecosystem through the Electronics Component Manufacturing Scheme (ECMS). Against an initial investment target of ₹59,000 crore, projects approved under the scheme have already crossed ₹69,000 crore as of August 2026. The number of approved companies has also reached 106, compared with an initial target of around 60.

Together, these projects are expected to create nearly 75,000 direct jobs and around 2.5 lakh total jobs, according to the Minister. Of the approved projects, 38 have already started manufacturing, while another 16 are under construction and installing machinery.

Vaishnaw highlighted the growing breadth of India's electronics ecosystem, which now includes PCBs, enclosures, speakers, antennas, optical transceivers, filters, capacitors, permanent magnets and advanced materials. Indian companies are also exporting components globally, including to China.

The Path Forward: Scale and Quality

The Minister said the next phase must focus on "scale AND quality", with six-sigma quality, high reliability, competitive costs and timely delivery determining whether Indian components become preferred by manufacturers globally. He also stressed the need for continued investment in design, materials, precision components, capital equipment and talent.

Vaishnaw said the electronics sector has moved from the 9th rank in merchandise exports to 3rd position in FY26, adding that the foundation built over the last 12 years will help India realise its potential over the next five years. (ANI)

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