India's electronics exports are expected to remain largely unaffected by new US tariffs, according to MeitY Secretary S. Krishnan, who noted key product exemptions and the growth of the semiconductor ecosystem. As per the latest government data, India's electronics exports surged to ₹4.24 lakh crore ($47.96 billion) in FY 2025-26, marking an eleven-fold increase from ₹38,263 crore in 2014-15. Electronic goods are now India's third-largest export category. Krishnan said while some smaller product categories that do not contain semiconductors and are outside the exemption framework could see an impact, the country's key electronics exports are expected to remain largely insulated. "We do not see too much of an impact on electronics exports, electronics and semiconductor-related exports except some will continue to stay exempted from this particular levy," he stated. However, some niche product categories could face headwinds, particularly those that don't contain semiconductors and are not covered under the exemption clause.
India's electronics manufacturing sector has achieved remarkable momentum in the first quarter of FY27, with smartphone exports reaching a record $9.84 billion, marking a 23.4% year-on-year increase from $7.97 billion in the same period last year. According to latest official data, Apple's iPhone production emerged as the biggest growth driver, with iPhones accounting for more than 75% of total smartphone exports, or roughly $22 billion. The United States continued to be the largest destination for smartphones manufactured in India, underlining the country's growing importance in global electronics supply chains. Smartphones contributed 64.8% of India's total electronics exports worth $15.2 billion during the April-June quarter, with industry estimates showing that shipments of Made-in-India smartphones grew 8% in 2025, driven largely by a 28% surge in exports. Nearly one in every three smartphones manufactured in India is now exported, reinforcing India's position as a global smartphone manufacturing hub.
India's electronics production demonstrated strong growth momentum in FY2025-26, reaching ₹13.11 lakh crore compared to ₹11.32 lakh crore in the previous fiscal year FY2024-25. According to reports from Business Standard, this represents a year-on-year growth rate of 15.8%, highlighting the significant expansion in the country's electronics manufacturing sector. As per The Times of India, the substantial growth has been primarily driven by comprehensive measures implemented by the Government to promote domestic production, exports and value addition of electronic goods.
The substantial growth in electronics manufacturing has been primarily driven by comprehensive measures implemented by the Government to promote domestic production, exports and value addition of electronic goods. As reported by Business Standard, these initiatives have focused on mobile phones, IT hardware and electronic components, creating a favorable environment for local manufacturing growth. According to The Times of India, these policy frameworks have been instrumental in driving the growth trajectory observed in the electronics sector over the past year, with the Production-Linked Incentive (PLI) scheme, reforms in Special Economic Zones (SEZs), increased budgetary support for electronics manufacturing and recent Foreign Direct Investment (FDI) reforms aimed at attracting global manufacturers providing sustained support for the sector's expansion.
The Government of India launched the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (LSEM) in 2020, specifically designed to boost domestic manufacturing of mobile phones in the country. According to The Times of India, PLI-LSEM has catalysed investments of approximately ₹96,000 crore (around USD 14 billion) in the mobile manufacturing ecosystem across the country. This policy framework has been instrumental in driving the growth trajectory observed in the electronics sector over the past year, with domestic value addition increasing to 23% in FY2023-24 as per an external evaluation study. The government has also launched additional schemes including PLI Scheme 2.0 for IT Hardware in 2023 and the Electronics Component Manufacturing Scheme (ECMS) with an investment outlay of ₹59,350 crore. As per The Times of India, the government also launched Semicon 2.0 with an outlay of ₹1,27,500 crore on July 15 to accelerate design and development of Indian chips. The Electronics Components Manufacturing Scheme (ECMS) launched in 2025 focuses on promoting domestic manufacturing of Printed Circuit Board, electrical and mechanical components, camera modules, etc. Against the estimated investment proposals of ₹59,350 crore, the government has received investment proposals of ₹1.15 lakh crore.
The government's semiconductor policy has evolved significantly, with Semicon 3.0 event expected to showcase the country's growing semiconductor ecosystem across the entire value chain, from manufacturing to end-use applications. As per ANI, MeitY Secretary S. Krishnan explained that "the important thing in Semicon 3.0... will be that you will see the entire value chain displayed in the way semiconductors are made all the way down to how they are used." The India Semiconductor Mission (ISM) Phase 2 has generated considerable industry interest and is expected to witness strong participation from global companies along with significant investment announcements. Krishnan highlighted that Semicon 2.0 marks a shift from focusing only on chip fabrication to building a complete semiconductor ecosystem. "Semicon 1 was basically focussed on manufacturing of chips. In Semicon 2.0, we are going beyond those companies to take a complete ecosystem approach so that the equipment used to manufacture semiconductors, the materials, the gases, the chemicals... and likewise the design system is also given greater emphasis," he stated. The revised policy also modifies funding and support mechanisms to encourage greater investments in segments where additional capacity is needed.
