India’s Electronics System Design and Manufacturing (ESDM) sector is on a robust growth trajectory, expected to double by 2030 and reach a market size of ₹7–8 lakh crore, according to a recent report by CareEdge Ratings. The report attributes this surge to the rising demand for smartphones, consumer electronics, and automotive technology, coupled with a strong manufacturing push by both public and private stakeholders.
Smartphone Manufacturing Leads the Charge
The smartphone segment continues to be the primary growth engine for India’s ESDM ecosystem. It accounted for 62% of the total ESDM market in FY25. Between FY20 and FY25, the segment recorded a compound annual growth rate (CAGR) of 28%, driven by deeper digital penetration, rising disposable incomes, and increasing adoption of smart devices in both urban and rural areas.
Looking forward, smartphone manufacturing is expected to grow at a CAGR of 23–25% from FY25 to FY30. Currently, nearly 99% of the smartphones sold in India are manufactured domestically, marking a dramatic shift from a heavy reliance on imports just a decade ago. The sector’s production value has grown from ₹18,900 crore in FY14 to an impressive ₹4.22 lakh crore in FY24.
Export Boom and Policy Push
India’s smartphone exports have risen significantly — from a mere 8% of total production in 2015 to over 36% by FY25. Annual shipments consistently exceed 150 million units and are projected to reach over 330 million units by FY25.
This momentum is largely credited to proactive government policies, including the Production Linked Incentive (PLI) scheme, SPECS, ECMS, and the Phased Manufacturing Programme (PMP). These have created a favorable environment for both global and domestic investments, increasing the number of smartphone production units from just two in 2014 to over 300 in 2024.
AI, IoT, and EV Sectors Add to Future Potential
As India continues to strengthen its digital infrastructure, adjacent sectors such as Artificial Intelligence (AI), Internet of Things (IoT), and Electric Vehicles (EVs) are expected to further drive ESDM growth. The country is well-positioned to emerge as a global manufacturing hub for high-value electronics, with its talent base, policy framework, and innovation ecosystem aligning for long-term competitiveness.