India’s mobile phone manufacturing sector has seen remarkable growth, reaching a value of Rs 4.1 lakh crore over the past decade. This impressive rise can be attributed to the Indian government's strategic policies, including the product-linked incentive (PLI) scheme and the phased-manufacturing programme (PMP). According to a report released on Wednesday, these initiatives have significantly bolstered local production capabilities.
In recent years, the electronics sector in India has experienced rapid expansion. Local production nearly doubled, increasing from $48 billion in the fiscal year 2016-17 to $101 billion in 2022-23.
As of the current fiscal year, production has surged to approximately $115 billion. Mobile phones now account for over 43 percent of this total production, reflecting the sector's dominance.
India has ascended to become the world’s second-largest manufacturer of mobile phones. This achievement has been bolstered by global tech giants such as Samsung, Apple, and Google, which have started manufacturing their latest smartphones in the country. This shift highlights India’s growing importance in the global electronics market.
The report, prepared by Koan Advisory for the Broadband India Forum (BIF), delves into various aspects of this growth. It examines the effects of tariff and customs rates, India’s integration into global value chains, and the challenges related to ease of doing business. Additionally, it explores opportunities for increasing female workforce participation and addressing gender disparities within the sector.
TV Ramachandran, President of BIF, emphasised the significant role of the 'Make in India' initiative in transforming India into a major hub for mobile device manufacturing.
He pointed out that strategic policies and production-linked incentives have successfully attracted global players and encouraged domestic manufacturers to expand their operations within India.
This growth has not only reduced the country's reliance on imports but has also created numerous job opportunities in the manufacturing sector. S Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY), highlighted that India’s status as the world’s second-largest mobile phone manufacturer is a testament to the government’s effective policies.
He noted that the government's focus on enabling beneficiaries of the PLI scheme to maximise their benefits has played a crucial role in enhancing India’s business environment.
Finance Minister Nirmala Sitharaman recently remarked on the industry’s progress, noting that domestic production has tripled and exports have increased nearly 100-fold over the past six years.
This significant growth reflects the maturation of the mobile phone industry in India and underscores the country’s expanding influence in the global electronics market.
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