India Emerges as a Global Mobile Manufacturing Powerhouse: From Importer to Exporter in Just a Decade

India's mobile phone industry has witnessed a monumental transformation over the past decade, transitioning from a significant importer to a global manufacturing leader. This remarkable shift not only strengthens the nation's economy but also places India among the world's top players in the global electronics market.

In the fiscal year 2014-15, India’s mobile phone production was valued at a modest ₹18,900 crore. Fast forward to the 2023-24 financial year, and this figure is expected to skyrocket to ₹4.10 lakh crore, underscoring the country’s rapidly expanding manufacturing capabilities. This dramatic increase is a testament to India’s commitment to becoming self-sufficient in the electronics sector, particularly in mobile phone manufacturing.

One of the standout achievements in this sector has been the surge in mobile phone exports. In 2014-15, exports were a mere ₹1,556 crore. According to data from the Indian Cellular and Electronics Association (ICEA), mobile exports over the last decade have reached ₹3.22 lakh crore, with the year 2023-24 alone contributing ₹1,20,000 crore.

This reflects a staggering 77-fold growth in exports, further enhancing India’s trade balance and bolstering its reputation as a reliable exporter of high-quality mobile devices.

On the other hand, imports have seen a drastic decline. In 2014-15, India imported mobile phones worth ₹48,609 crore. By 2023-24, this figure is projected to drop to ₹7,665 crore—a significant 84% reduction. This steep decline in imports underscores India's successful efforts in reducing its dependency on foreign manufacturers, thanks to numerous government initiatives promoting local production.

In 2014-15, approximately 74% of all mobile phones in India were imported. However, today, more than 99% of mobile phones used in India are 'Made in India,' highlighting the country's significant strides towards self-reliance and self-sufficiency in mobile manufacturing.

Since 2014, India has produced an impressive 2.5 billion mobile handsets, valued at ₹20 lakh crore. Moreover, the number of mobile manufacturing units has surged from just a handful in 2014 to over 200 units today, making India the second-largest mobile phone manufacturing nation globally. With an annual production rate of 325 to 330 million phones, India now holds the title of the world's fastest-growing mobile phone manufacturing market.

Key Government Initiatives Driving Growth

The government has played an instrumental role in India's mobile manufacturing revolution. The Phased Manufacturing Programme (PMP), launched in 2017, was a landmark initiative that aimed to indigenize mobile phone production.

The program incentivized large-scale manufacturing by gradually increasing import duties on mobile phone components, thereby encouraging local assembly and production.

Building on the success of PMP, the Union Budget of 2021-22 introduced the Production Linked Incentive (PLI) scheme for Large-Scale Electronics Manufacturing (LSEM) and IT hardware.

This scheme offers manufacturers incentives ranging from 3% to 5% on incremental sales value, which has attracted global giants like Foxconn, Pegatron, Rising Star, and Wistron to set up operations in India.

One of the flagship symbols of India’s rise in this sector is Samsung’s largest mobile phone production facility, located in Noida. This factory is a prime example of India’s attractiveness as a global manufacturing hub and showcases its ability to host large-scale production facilities for major international corporations.

Impact on Employment and Economy

The growth of the mobile manufacturing sector has had a profound impact on employment in India. Between 2023 and 2028, the sector is expected to generate 8 lakh new jobs, providing a significant boost to the nation’s workforce. The Government of India estimates that the sector will be worth $126 billion (₹10,587.82 billion) by 2025-26.

India is also set to become the second-largest 5G market after China by 2024, surpassing the United States. This projection aligns with Deloitte's February 2022 report, which predicts that India will soon have one billion smartphone users, a remarkable milestone that underscores the nation’s rapid digital transformation.

Impact on the Broader Electronics Sector

The success of the mobile phone manufacturing industry has created ripple effects across the broader electronics sector. Mobile phone production now accounts for 43% of the total electronics production in India.

According to government data, the electronics sector’s production value has more than doubled from $48 billion (₹4,033.46 billion) in FY17 to $101 billion (₹8,487 billion) in FY23, employing over 1.2 million people. The mobile phone sector is the primary driver of this exponential growth.

This journey from being a major importer to becoming a leading exporter and manufacturer underscores India's strategic focus on developing its manufacturing sector. The success of India’s mobile phone industry demonstrates the potential of the country’s manufacturing landscape and sets the stage for further growth in the global electronics market.

Conclusion

India's mobile phone manufacturing journey over the past decade has been nothing short of transformative. From being a major importer to emerging as a global exporter and manufacturing hub, the country’s progress underscores the effectiveness of strategic government initiatives like the Phased Manufacturing Programme (PMP) and Production Linked Incentive (PLI) scheme.

With exports soaring and imports drastically reduced, India is now nearly self-sufficient in mobile phone production, solidifying its position as the second-largest mobile manufacturing nation globally.

This remarkable growth has not only bolstered the nation’s economy but has also created a ripple effect across the broader electronics sector. India’s mobile industry is on track to generate millions of jobs, boost exports, and position itself as a key player in the global 5G market. As India continues its upward trajectory in the electronics sector, it sets a powerful example of how a nation can transform its manufacturing landscape and become a global leader within just a decade.