India eyes 14-fold jump in electronic component production by FY31
- IBEF
- August 25, 2026
India is targeting a significant expansion in electronics manufacturing, with total electronics production projected to reach Rs. 41.40 lakh crore (US$ 433.43 billion) by FY31, according to a report by Kotak Mutual Fund. Electronic component production is expected to emerge as a major growth driver, increasing from Rs. 86,940 crore (US$ 10.5 billion) in FY24 to Rs. 12.42 lakh crore (US$ 129.90 billion) by FY31, representing a more than 14-fold rise. Mobile phone production is also projected to grow from Rs. 4.22 lakh crore (US$ 51 billion) in FY24 to Rs. 13.17 lakh crore (US$ 137.75 billion) by FY31, while consumer electronics production, including televisions, audio products and accessories, is expected to increase from Rs. 1.08 lakh crore (US$ 13 billion) to Rs. 2.98 lakh crore (US$ 31.17 billion). The projections indicate a broader diversification of India's electronics manufacturing base beyond mobile phones, with increasing focus on domestic production of components and other high-value electronics.
Other segments are also expected to register significant growth during the period. IT hardware production, including laptops and tablets, is projected to increase from Rs. 41,400 crore (US$ 5 billion) in FY24 to Rs. 2.65 lakh crore (US$ 27.72 billion) by FY31, while wearables and hearables are expected to rise from Rs. 20,700 crore (US$ 2.5 billion) to Rs. 3.15 lakh crore (US$ 32.95 billion). Auto electronics production is projected to increase from Rs. 66,240 crore (US$ 8 billion) to Rs. 2.73 lakh crore (US$ 28.55 billion), while telecom equipment is expected to grow from Rs. 28,980 crore (US$ 3.5 billion) to Rs. 1.24 lakh crore (US$ 12.97 billion). The report also estimates that the "Others" category will increase from Rs. 1.78 lakh crore (US$ 21.5 billion) to Rs. 3.06 lakh crore (US$ 32.00 billion). The sharp increase in electronic component production, which is projected to add around Rs. 11.55 lakh crore (US$ 120.80 billion) during the period compared with an increase of Rs. 8.94 lakh crore (US$ 93.55 billion) in mobile phone production, highlights the growing importance of components in India's electronics manufacturing ecosystem. The expansion is expected to strengthen India's capabilities across the electronics value chain and support the country's broader ambition of becoming a global electronics manufacturing hub.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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