Electronics & mobile manufacturing emerged as major growth drivers: Economic Survey

The Economic Survey tabled in Parliament on Thursday noted that electronics and mobile manufacturing emerged as major growth drivers, with electronics rising from the 7th to the third largest export category (FY22-FY25).

“India’s electronics sector has undergone a structural transformation in recent years, ascending from the seventh-largest export category in FY22 to the third-largest and fastest-growing in FY25,” according to the Economic Survey 2025-26 tabled in the Parliament by Union Finance Minister Nirmala Sitharaman.

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The survey notes that this growth is underpinned by a remarkable surge in domestic production and export volumes. Central to this expansion is the mobile manufacturing segment, which witnessed a nearly 30-fold increase in production value, rising from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25.

India’s industrial performance remains robust as Industry Gross Value Added (GVA) grew by 7.0 per cent year-on-year, in real terms, in the first half of FY 2025-26, marking a clear pickup after growth had eased to 5.9 per cent in the previous fiscal year (FY2024-25), the survey said.

Manufacturing GVA grew by 7.72 per cent and 9.13 per cent in Q1 and Q2 of FY26, respectively, primarily driven by ongoing structural shifts within the sector, it said.

The survey additionally mentions, these include a gradual move toward higher-value manufacturing segments, improved availability of industrial infrastructure through corridor-led development, and greater adoption of technology and formalisation across firms.

“Medium and high-technology activities now account for 46.3 per cent of India’s total manufacturing value added. This is attributed to various government initiatives such as the Production Linked Incentive (PLI) schemes and the India Semiconductor Mission, alongside the strengthening of domestic capacities in electronics, pharmaceuticals, chemicals and transportation sectors,” it said.

The survey optimistically further states that India’s global standing has strengthened, as its ranking in terms of Competitive Industrial Performance (CIP) improved to 37th in 2023, up from 40th position in 2022.

Though Bank-based industrial credit growth from commercial banks moderated to 8.24 per cent in FY25 compared to 9.39 per cent in FY24, assessments indicate an ongoing diversification of funding sources away from banks, it stated.