India's Electronics sector aims for 90% value addition by FY 2027

India is strengthening its position as a global manufacturing hub, with value addition in electronics manufacturing increasing from 30 per cent to nearly 70 per cent and is estimated to reach 90 per cent by FY 2027. With the new component policy, the country aims to increase the value addition to 40 to 50 percent from 15 to 16 percent at present. Smartphone exports have grown 77 times in the last 10 years. India has reduced imports of fully manufactured air conditioners from 35 per cent in FY19 to just 5 per cent in FY25. Key  parts such as compressors, copper tubes and aluminium coils are now being manufactured in India.

Import of Electronics

In FY 2024, approximately 8.5 million RAC compressors were imported.  Demand for printed circuit board assemblies (PCBA) has increased in both the business and consumer sectors, helped by higher import duties. As of 2016, India imported more electronics than it manufactured. But now, thanks to the Make in India campaign, production is now about 24 per cent higher than imports. Electronics exports have been growing at a rapid pace, with a compound annual growth rate (CAGR) of around 26 percent from FY 2016 to FY 2025.

Import of PCBA

Imports of mobile PCBAs worth about 300 billion in FY 2018 have dropped to almost zero in FY 2024. With the new policies, India is now moving towards making more PCBs and other electronic parts in the country. India is fast becoming a top choice for global electronics manufacturing and export. To attract manufacturers, the government has reduced the corporate tax rate for new manufacturing units to just 15 per cent.

World's second-largest mobile phone producer

By implementing a comprehensive global strategy for China and simplifying export processes, India is now seen as a strong alternative to global companies. India is now the second largest mobile phone producer in the world. About 99 percent of phones sold in India are made locally.