The Economic Survey 2025-26 has unveiled a remarkable transformation in India's electronics sector, positioning the nation as a global export powerhouse. This comprehensive report highlights unprecedented growth in mobile phone manufacturing and digital infrastructure, signaling a new era for the Indian economy.
India's Meteoric Rise in Electronics Manufacturing
According to the latest Economic Survey data, India has solidified its position as the world's second-largest mobile phone manufacturer. This achievement represents a dramatic turnaround for a sector that was once heavily dependent on imports. The manufacturing segment has experienced explosive growth, with production value increasing nearly 30-fold over the past decade.
Staggering Production Value Growth
The numbers tell a compelling story of India's manufacturing revolution. From a modest Rs 18,000 crore in the financial year 2014-15, mobile phone production value has skyrocketed to an impressive Rs 5.45 lakh crore in the financial year 2024-25. This represents one of the most significant industrial transformations in recent Indian economic history.
Digital Infrastructure Expansion
Parallel to the manufacturing boom, India's digital landscape has undergone massive expansion. The Economic Survey reveals that internet users have now crossed the 950 million mark, creating a vast domestic market while simultaneously supporting export-oriented manufacturing. This digital penetration has created a virtuous cycle, where increased device manufacturing supports internet adoption, and growing internet usage drives demand for more devices.
Export Powerhouse Emergence
The Economic Survey 2025-26 emphasizes how India has evolved from being primarily an importer of electronic goods to becoming a significant exporter. Several factors have contributed to this transformation:
- Production-Linked Incentive (PLI) Schemes: Government initiatives have successfully attracted global manufacturers to set up production facilities in India
- Supply Chain Diversification: Global companies are increasingly looking to India as an alternative manufacturing hub
- Skilled Workforce Development: India's technical education system has produced a growing pool of skilled workers for the electronics sector
- Infrastructure Improvements: Enhanced logistics and industrial infrastructure have made manufacturing more efficient and cost-effective
Global Implications
India's emergence as an electronics manufacturing powerhouse has significant implications for global supply chains. The country is now positioned to compete directly with established manufacturing centers in East Asia, offering both scale and technological capability. This shift is particularly notable in the mobile phone segment, where Indian-made devices are increasingly finding markets across Asia, Africa, and beyond.
Future Outlook and Challenges
While celebrating these achievements, the Economic Survey also acknowledges areas requiring continued attention:
- Component Manufacturing: While final assembly has grown dramatically, there remains room for improvement in domestic component manufacturing
- Research and Development: Increased investment in R&D is needed to move up the value chain
- Sustainability: The environmental impact of electronics manufacturing requires careful management
- Skill Enhancement: Continuous upgrading of workforce skills to keep pace with technological advancements
The Economic Survey 2025-26 presents a comprehensive picture of India's electronics sector transformation. With mobile phone manufacturing reaching unprecedented levels and internet penetration creating new opportunities, India stands at the threshold of becoming a global leader in electronics production and export. The convergence of manufacturing capability and digital infrastructure represents a powerful combination that could drive economic growth for years to come.
