India's Semiconductor Push Drives Massive Electronics Growth and Job Creation

India’s electronics manufacturing output has risen nearly sixfold in the past decade, reaching Rs 11.3 lakh crore in FY 25, while exports have climbed eightfold, propelled by policy measures such as the Production‑Linked Incentive (PLI) scheme and the Make in India programme. The country now aims for $500 billion in electronics production and $180‑200 billion in exports by 2031, with mobile phone output meeting over 99 % of domestic demand.

The government has approved the Semicon 2.0 programme with a budget of Rs 1.27 lakh crore, shifting from one‑time grants to milestone‑linked funding and equity stakes in semiconductor startups. The revised framework emphasizes chip design, supply‑chain development and advanced manufacturing, while scaling down subsidies for land and technology transfer. It also includes a 0 % duty on 85 categories of electronic components to lower production costs.

Industry estimates forecast the initiative will generate between 150,000 and 200,000 jobs over the next five years, expanding India’s role from an assembly hub to a global centre for chip design, advanced packaging and high‑value electronics production.