• Air conditioning localization: The domestic air conditioning industry has transitioned from 80% import dependence to 95–100% local manufacturing, with component indigenization reaching nearly 70%. Total investments in the sector have surpassed ₹45,000 crore, well beyond the ₹12,000 crore committed under the Production Linked Incentive (PLI) scheme.
• Electronics manufacturing transition: Electronics production expanded nearly sixfold over the past decade, with 99.2% of mobile phones now assembled domestically. The sector's incentive focus is actively shifting from basic assembly toward localized semiconductor fabrication, component modules, and design-linked initiatives.
• Private capital deployment: Full deployment of private capex remains constrained by external uncertainties, including Middle East conflicts, supply chain realignments, and shifting export tariff structures.
• Defense sourcing strategy: Despite pragmatic bilateral dialogues and relaxations with China in select areas, defense manufacturing continues to strictly limit Chinese components in favor of indigenous capacity and alternative international partnerships.