India's Electronics Manufacturing Surge Amid Global Supply Chain Shifts
India's share of global smartphone production is projected to reach 18% by 2025, driven by the 'China plus one' strategy. The country has also committed $10 billion towards developing its semiconductor industry, aiming for a $120 billion to $150 billion value chain by 2035.
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By 2025, India is expected to produce 18% of global smartphones, benefiting from a global shift in supply chains away from China. The Production Linked Incentive scheme has significantly boosted domestic mobile phone manufacturing, with production increasing over twentyfold in less than ten years.
India's electronics exports reached approximately $22.2 billion in the first half of FY26, reflecting a 42% year-on-year increase. The government is investing $10 billion in semiconductor development, targeting a robust domestic ecosystem to enhance manufacturing capabilities.
This shift may reduce reliance on Chinese imports and support India's ambition to become a significant manufacturing hub. However, challenges remain, including ensuring quality and documentation standards to meet global buyer expectations.
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