Make in India at 12: Electronics production rises from ₹1.9 lakh cr to ₹13.11 lakh cr

Ziraat Times Team Report

New Delhi, September 25: India’s manufacturing sector has expanded across electronics, automobiles, pharmaceuticals, steel, railways and advanced industrial technologies during the 12 years since the launch of the Make in India initiative, according to a PIB research release.

Launched on September 25, 2014, the initiative has focused on attracting investment, strengthening domestic production, developing industrial capabilities and promoting innovation. Its scope has expanded under Make in India 2.0 to cover 27 sectors, including 15 manufacturing and 12 services sectors.

Manufacturing Gross Value Added (GVA) at constant prices recorded a compound annual growth rate of 10.88% between 2022–23 and 2025–26 under the revised national accounts series. The manufacturing component of the Index of Industrial Production (IIP) grew by 7% during April–July 2026 compared with the corresponding period of 2025.

Electronics production rises nearly sevenfold

Electronics production increased from approximately ₹1.9 lakh crore in 2014–15 to ₹13.11 lakh crore in 2025–26, representing nearly sevenfold growth.

Mobile phone production rose from around ₹18,000 crore to ₹6.27 lakh crore during the same period, an increase of approximately 33 times. India is now the world’s second-largest mobile phone manufacturer by volume.

Overall electronics production grew by 15.8% in 2025–26 compared with the previous year, according to the release.

Automobile and pharmaceutical manufacturing expands

Vehicle production reached 31.03 million units in 2024–25, around 33% higher than in 2014–15.

Compared with 2020–21, production in 2024–25 increased by 65% each for passenger and commercial vehicles, 71% for three-wheelers and 30% for two-wheelers.

India’s pharmaceutical industry ranks third globally by volume and 11th by value. Its annual turnover reached ₹4,71,898 crore in 2024–25, with a compound annual growth rate of 9.5% since 2020–21.

Domestic medical-device manufacturing increased by approximately 48.2%, from ₹28,000 crore in 2019–20 to ₹41,500 crore in 2024–25.

Steel and railway production increase

Crude steel production increased from 81.7 million tonnes in 2014–15 to 170 million tonnes in 2025–26.

Indian Railways manufactured 54,809 coaches between 2014 and 2024, while average annual coach production rose from fewer than 3,300 during 2004–14 to 5,481 during 2014–24.

In 2025–26, the railways produced 1,674 locomotives and 6,677 Linke Hofmann Busch (LHB) coaches. The coaches are designed to provide improved safety, comfort and travel stability.

The release also highlighted the domestic production of railway wheels, axles and wheelsets as part of the expansion of manufacturing capabilities.

Domestic capabilities expand into advanced technologies

The PIB release highlighted developments in components, integrated systems and strategic materials used in industrial products.

Key developments include:

• Semiconductors: ISRO and the Semiconductor Laboratory developed the VIKRAM3201 and KALPANA3201 microprocessors for space applications. VIKRAM3201 was described as the first fully Make-in-India microprocessor qualified for the harsh conditions of launch vehicles.

• Rare-earth magnets: A pilot plant for neodymium-iron-boron (Nd-Fe-B) permanent magnets was established at the Advanced Research Centre for Powder Metallurgy and New Materials (ARCI), Hyderabad, in March 2026.

• Solar manufacturing: Solar module manufacturing capacity increased from 2.3 GW in 2014 to 192 GW as of June 2026, while solar-cell capacity rose from 1.2 GW to approximately 30 GW.

• Electric vehicles: An indigenous 30 kW drive system combining a motor and inverter was launched in March 2026 and is ready for commercialisation.

• Aircraft manufacturing: Hindustan Aeronautics Limited opened its third Light Combat Aircraft Tejas Mk1A production assembly line in October 2025, increasing annual production capacity to 24 aircraft.

The release also cited domestic manufacturing of nuclear steam-generator tubes and other industrial components as examples of expanding capabilities across complex supply chains.

Capital goods production nearly doubles

Production across heavy engineering equipment and various capital goods subsectors increased from ₹2,87,233 crore in 2019–20 to ₹5,69,900 crore in 2024–25, according to Ministry of Heavy Industries data cited in the release.

Earthmoving and mining machinery recorded the highest growth among the listed categories, increasing by 160.3% from ₹31,028 crore to ₹80,750 crore.

Other reported increases included:

Government initiatives support investment and production

The release identified several initiatives aimed at improving the investment environment and strengthening industrial infrastructure.

The National Single Window System (NSWS) provides access to more than 327 central approvals and 3,452 state approvals across 34 states and Union Territories. As of September 21, 2026, it had onboarded more than 5.69 lakh business entities.

The India Industrial Land Bank had mapped 4,220 industrial parks covering approximately 6.98 lakh hectares as of May 2026.

Under the PM GatiShakti National Master Plan, the Network Planning Group had evaluated 396 projects worth approximately ₹18.66 lakh crore as of August 11, 2026. Of these, 256 projects had been sanctioned, including 198 under implementation.

The Production Linked Incentive (PLI) schemes, covering 14 sectors, attracted ₹2.40 lakh crore in investment and generated more than ₹22.66 lakh crore in production and sales as of June 2026. The schemes also supported over ₹15.20 lakh crore in exports and created more than 14 lakh jobs, according to the release.

New schemes target semiconductors, industrial parks and specialty materials

The government has introduced or approved new initiatives to deepen domestic manufacturing, including:

• Semicon 2.0: An allocation of ₹1,27,500 crore to support India’s semiconductor ecosystem, including manufacturing, advanced packaging, research and talent development.

• Mobile Phone Manufacturing Scheme: ₹62,500 crore allocated for 2026–27 to 2030–31 to expand mobile phone production and domestic value addition.

• Bharat Audyogik Vikas Yojana (BHAVYA): ₹33,660 crore allocated to develop 100 investment-ready industrial parks.

• Sintered Rare Earth Permanent Magnets Scheme: ₹7,280 crore allocated to establish 6,000 metric tonnes per annum of integrated manufacturing capacity.

• BHAVYA Rasayan: ₹3,030 crore allocated for the establishment of three dedicated chemical parks.

The Production Linked Incentive Scheme for Specialty Steel has also been expanded, with its third round launched in November 2025 to cover advanced steel categories, including super alloys, CRGO steel, titanium alloys and coated steels.

Make in India 2.0 covers 27 sectors

The government’s manufacturing strategy includes facilitating investment, promoting innovation, developing infrastructure and simplifying business processes.

India’s cumulative foreign direct investment reached USD 843 billion between 2014–15 and 2025–26, an increase of 169% over the preceding 12-year period, according to the release.

The PIB stated that the initiative’s focus has expanded from increasing production to developing the skills, technology and industrial capacity required to manufacture more products domestically and compete in global markets.