In a remarkable development, India's mobile phone manufacturing sector has witnessed an extraordinary surge, with its value jumping 21-fold to Rs 4.1 lakh crore over the past decade.
This remarkable growth is attributed to strategic government policies like the Production Linked Incentive (PLI) scheme, which has attracted global players and bolstered local production.
The India Cellular and Electronics Association (ICEA) revealed that India now produces 97 percent of its total mobile phone demand domestically, marking a significant shift towards self-sufficiency in this crucial sector.
Moreover, 30 percent of the total production in the financial year 2024 is earmarked for export, indicating a strong global demand for Indian-manufactured devices.
From a modest Rs 18,900 crore in 2014-15, mobile phone production has skyrocketed to an estimated Rs 4.1 lakh crore in FY'24, reflecting an exponential increase of 2000 percent.
Similarly, mobile phone exports have surged from a mere Rs 1,556 crore in 2014-15 to an estimated Rs 1.2 lakh crore by the end of FY'24, marking a phenomenal 7500 percent increase over a decade.
Key players like Apple and Samsung have played a pivotal role in boosting mobile phone exports from India. The country's manufactured devices are now finding their way into markets across the UK, Netherlands, Austria, Italy, Middle East, North Africa, and South America, underscoring India's growing prowess in the global electronics market.
A major catalyst for this transformative growth has been the government's Phased Manufacturing Programme (PMP), announced in May 2017, which aimed to promote domestic production of mobile handsets. This initiative laid the groundwork for a robust indigenous manufacturing ecosystem and incentivized large-scale production.
Furthermore, the Production Linked Incentive (PLI) scheme for Large-Scale Electronics Manufacturing (LSEM) and IT hardware has been instrumental in positioning India as a competitive destination for electronics manufacturing.
Offering incentives ranging from 3 to 5 percent of incremental sales value, the PLI scheme has attracted leading global contract manufacturers like Foxconn, Pegatron, Rising Star, and Wistron to establish production bases in India.
Samsung, in particular, operates its second-largest mobile phone factory in Noida, highlighting the company's confidence in India's manufacturing capabilities.
This remarkable growth trajectory underscores the collaborative efforts between industry stakeholders and key government ministries, including the Ministry of Electronics and IT, DPIIT, Ministry of Commerce, Ministry of Finance, NITI Aayog, and the PMO, in creating an enabling policy environment for the sector's expansion.
In conclusion, India's mobile phone manufacturing sector's unprecedented growth and surging exports stand as a testament to the country's growing prominence as a global electronics manufacturing hub. With continued policy support and industry collaboration, India is poised to further strengthen its position in the global electronics market in the years to come.
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