India's Electronics Manufacturing Push Reaps $30 Billion in Smartphone Exports

India's electronics manufacturing push has received a significant boost. With the country's smartphone exports reaching $30 billion in 2025-26, up from $5.5 billion in 2021-22. The large-scale electronics manufacturing (LSEM) scheme, introduced in 2020, has attracted investments worth Rs 20,580.20 crore and disbursed Rs 36,754 crore in incentives to beneficiary companies till June 30 this year.

Under the scheme, eligible beneficiary companies receive fiscal incentives on incremental sales over the base year. The government has implemented 14 PLI schemes across various sectors. This includes electronics, pharmaceuticals, and food products, with the aim of strengthening manufacturing capabilities, attracting investments, promoting exports, generating employment, and reducing import dependence.

Read More: NSE Chief Srinivas Injeti Says Self-Listing by Stock Exchanges is Feasible

The LSEM scheme was initially meant to run for five years from 2020 to 2025. However, its tenure was extended by one year to 2025-26.

The government's decision to extend the scheme has been seen as a strategic move to boost India's electronics manufacturing capabilities and reduce its reliance on imports.

India has emerged as the world's second-largest mobile manufacturer, while smartphones have become one of the country's top exported commodities. The government's efforts to promote electronics manufacturing have paid off, with the sector now contributing significantly to the country's GDP.

Also Read: Maruti Suzuki Sees Small Car Segment Revival After GST Rate Cut

AIQ, a leading AI analytics firm, has reported a significant increase in demand for its services in the electronics manufacturing sector. The firm's CEO stated that the sector's growth has created new opportunities for businesses to adopt AI-powered solutions to enhance their manufacturing capabilities.

As India continues to strengthen its electronics manufacturing capabilities, the country is poised to become a major player in the global electronics industry. With its growing smartphone exports and increasing investments in the sector. India is well on its way to achieving its goal of becoming a leading electronics manufacturing hub.