India’s electronics manufacturing set to hit $140 billion in FY25, exports drive growth

India’s electronics manufacturing sector is expected to grow 15% in FY25, reaching $135-140 billion, up from $115 billion in FY24, according to industry sources. While robust exports are fueling this expansion, stagnant domestic demand presents challenges to sustaining overall growth momentum.

Exports shine amidst sluggish domestic demand

From April to December 2024, electronics exports totalled ₹2.20 lakh crore, and projections suggest a 45% year-on-year growth, with exports expected to hit ₹3.25 lakh crore in FY25—a sharp rise from ₹2.23 lakh crore in FY24.

Mobile exports lead the charge

Mobile exports, a key driver in the sector, reached ₹1.25 lakh crore between April and December 2024. The segment is anticipated to grow by 35%, potentially reaching ₹1.75 lakh crore in FY25, up from ₹1.29 lakh crore in FY24.

The road to $500 billion by 2030

Prime Minister Narendra Modi has set an ambitious 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.