Industry sources predict that India's electronics manufacturing sector will expand by 15% in FY25, scaling up to $135-140 billion from $115 billion in FY24. Although strong exports drive this expansion, weak domestic demand poses difficulties in maintaining overall growth momentum. India is one of the largest consumer electronics markets in the Asia Pacific Region and has considerable proficiency in electronic chip design and embedded software. India targets reaching US$ 300 billion in electronics production and US$ 120 billion in exports by the year 2025-26.

From April to December 2024, electronics exports reached ₹2.20 lakh crore, with forecasts indicating a 45% increase compared to the previous year, as exports are anticipated to rise to ₹3.25 lakh crore in FY25 up significantly from ₹2.23 lakh crore in FY24.

Mobile exports, an essential aspect of the sector, reached ₹1.25 lakh crore from April to December 2024. The segment is projected to grow by 35%, potentially reaching ₹1.75 lakh crore in FY25, up from ₹1.29 lakh crore in FY24.

Prime Minister Narendra Modi has set a target of achieving $500 billion in electronics manufacturing by FY30. However, reaching this goal requires a Compound Annual Growth Rate (CAGR) of 27.7%—a pace that current projections for FY25, at 15% growth, fall short of.