Economic Survey 2025: In the last 10 years, domestic electronics production has increased manifold to Rs 9.52 lakh crore in FY 2023-24. However, the focus of the industry mainly focused on assembling has led to limited progress in design and components manufacturing. This has been said in the Economic Review 2024-25.
According to the Economic Review of FY 2024-25 presented in Parliament on Friday, India accounts for four percent of the global electronics market. But its attention is mainly focused on assembling activities. Economic reviews say, “Better infrastructure, business ease and various incentives have promoted domestic manufacturing and have attracted foreign investment,” says Economic Review. However, there has been limited progress in design and components manufacturing. ”
According to the review, domestic production of electronics products was Rs 1.90 lakh crore in FY 2014-15, which increased to Rs 9.52 lakh crore in FY 2023-24 with an annual increase of 17.5 percent. During this period, the notable increase in manufacturing mobile phones has reduced dependence on imports and 99 percent of the total smartphones are being met by production in indigenous. The country produced about 33 million mobile phone units in the last financial year, with more than 75 percent models equipped with 5G capacity.
Economic review says that the huge domestic market, availability of skilled talents and low cost labor have played an important role in speeding up electronics manufacturing. Apart from this, the incentive related to production (PLI) schemes has also promoted domestic electronics manufacturing and has seen its effect especially in the mobile phone section.
According to the Economic Review, “In FY 2022-23, only four percent of mobile phones were imported in terms of price while the figure was at 78 percent in 2014-15.” In terms of quantity, this import was only 0.8 percent. Similarly, export of mobile phones also increased to Rs 88,726 crore in 2022-23, while in 2015-16 it was worth zero.