Advantage India
Robust
Demand
*India has strong design and R&D capabilities in auto electronics and industrial economics. India is the second-largest manufacturer of mobile phones in the world and will be the fifth-largest consumer of electronic products by FY26.
*In FY25, India became second-largest manufacturer of mobile phones in the world, with 300 manufacturing units.
Competitive
Advantage
*India committed to reach US$ 300 billion worth of electronics manufacturing and exports of US$ 120 billion by FY26.
*AI is expected to add US$ 967 billion to Indian economy by 2035 and US$ 450-500 billion to India’s GDP by 2025, accounting for 10% of the country’s US$ 5 trillion GDP target.
Policy
Support
*The production-linked incentive (PLI) schemes will provide companies opportunities to establish manufacturing plants in India.
*In March 2025, India announced a PLI scheme valued at Rs. 22,900 crore (US$ 2.68 billion) aimed at boosting domestic electronics manufacturing and decreasing dependence on imported components.
Increasing
Investments
*Tata Consultancy Services (TCS) is partnering with Tata Electronics Pvt Ltd to support India's goal of producing its first domestically manufactured chips by FY26.
*Investment of Rs. 8,803 crore (US$ 1.06 billion) has been made under the scheme for promotion of manufacturing of electronic components and semiconductors.
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