India’s mobile phone manufacturing has surged to 99.2% domestic output, a 33‑fold jump since 2015 and a 165‑fold rise in exports over the same period. The shift has positioned the country as the world’s second‑largest mobile phone producer by volume.
The broader electronics trade mirrors this momentum: 2025‑26 imports hit $179 billion while exports reached $90.6 billion, a near‑doubling over five years. Tamil Nadu alone accounted for 31% of exports, with Maharashtra and Karnataka contributing 16% and 15.4% respectively, underscoring a concentration of manufacturing hubs.
Semiconductor imports, however, remain a glaring vulnerability. In 2025‑26 India imported $36.5 billion of chips against $1.5 billion in exports, widening the deficit to roughly $35 billion. NITI Aayog projects the domestic market to reach $200 billion by 2035, yet 90‑95% of demand stays satisfied overseas.
During the Semicon India 2026 event on September 17, Modi urged the tech community to focus on fabless firms, domestic intellectual property, and silicon photonics for AI infrastructure. He highlighted 12 approved semiconductor projects and a burgeoning demand pipeline as catalysts for reshaping supply chains.
Industry leaders welcomed the push, noting that incentives for equipment, chemicals, gases, and materials could attract global players seeking diversification. The government plans to roll out tax breaks and streamlined approvals in the next fiscal quarter.
The next milestone will be a policy brief from the Ministry of Electronics in early October, outlining detailed incentives and timelines. Analysts say the initiative could shrink the trade deficit by a third within the next decade, but success hinges on swift implementation and sustained investment.