Summary:

India is rapidly emerging as a global manufacturing powerhouse, particularly in electronics, thanks to favorable government policies and a skilled labor pool. The value addition in electronics has risen from 30% to 70% and is projected to reach 90% by FY27. Mobile phone exports have increased 77 times over the last decade, while imports of fully assembled air conditioners have decreased. Local manufacturing of compressors, copper tubes, and PCBA is also rising.

India's electronics exports grew at a 26% CAGR from FY16 to FY25. Mobile PCBA imports dropped from Rs. 30,000 crore (US$ 3.48 billion) in FY18 to almost nothing by FY24. Government initiatives such as PLI, PMP, and SPECS, along with a 15% corporate tax rate for new manufacturing units, have enabled India to become the world's second-largest mobile phone producer, with 99% of phones made domestically.

Source: IBEF

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