Indian electronics manufacturing expected to reach $140 billion in FY25, with exports driving growth

India’s electronics manufacturing sector is expected to grow 15% to reach $135-140 billion in FY25 from $115 billion in FY24, industry sources said. While strong exports are driving this expansion, sluggish domestic demand poses challenges to maintaining overall growth momentum.

Exports are strong despite sluggish domestic demand

Total electronics exports from April to December 2024 reached Rs 2.25 billion, with forecasts suggesting a 45% year-on-year growth, with exports expected to reach Rs 3.25 billion in FY25. This was a significant increase from 2.23 billion rupees in FY2014.

Mobile exports take the lead

Mobile exports, a major driver of the sector, reached Rs 1,250 crore during April-December 2024. The sector is expected to grow by 35% and could reach Rs 1,750 crore in FY25 from Rs 1,290 crore in FY24.

Path to $500 billion by 2030

Prime Minister Narendra Modi has set an ambitious target of achieving $500 billion in electronics manufacturing by FY30. However, achieving this goal would require a compound annual growth rate (CAGR) of 27.7%. This pace falls short of the current forecast of 15% growth in FY25.