Electronics manufacturing & semiconductors.

Electronics manufacturing generated gross production of ~US$135 bn (₹11.8 lakh crore) in FY26 but only an estimated ₹1.7 lakh crore of domestic value added, about 14% of output, because 70-80% of a device's bill of materials is imported. It is India's fastest-growing manufacturing export (from US$12 bn in FY20 to US$52 bn in FY26) but is fundamentally an assembly industry rather than a component-making one, dominated by contract manufacturers such as Foxconn, Tata Electronics and Samsung assembling phones for Apple, Samsung and Chinese brands. The Production-Linked Incentive scheme (2020) built the smartphone assembly base; the 2025 Electronics Component Manufacturing Scheme and the ₹76,000 crore India Semiconductor Mission are now trying to build the next, higher-value layer (components, OSATs, the Dholera wafer fab). Growth depends on whether the value-added-to-production ratio rises from 14% toward 15.5-17% as component localisation and semiconductor packaging/fab output come on stream; without that shift, each additional US$10 bn of exports adds only ₹1,200-1,500 crore to GVA.

Estimated GVA

1.7 ₹ lakh crore (0.54% of national GVA; 3.6% of manufacturing) · FY26

Gross production

~135 US$ bn (₹11.8 lakh crore); mobiles ~US$60 bn · FY26

Exports / Imports

52 / 98 US$ bn (electronic goods; net importer of US$46 bn) · FY26

Direct employment

~1.5 mn (assembly-heavy; ~1 mn in mobiles) · FY26

Listed PAT (ex-BEL)

~0.03 ₹ lakh crore · FY26

Listed market cap

~2.3 ₹ lakh crore (Dixon ~₹0.9 LC, PE >60x) · FY26

GVA ÷ production ratio

14 % · FY26

ISM outlay / approved project investment

76,000 / ~160,000 ₹ crore · FY26