India has solidified its position as the world’s second-largest producer of mobile phones, marking a significant shift from being heavily import-dependent to 97% self-sufficient in 2024. Industry data released by the Indian Cellular and Electronics Association (ICEA) reveals that only 3% of mobile phones sold in India are now imported, showcasing a monumental transformation over the past decade.
The mobile phone manufacturing sector set an ambitious target of Rs 20,00,000 crores between 2014 and 2024. While falling just short at Rs 19,45,100 crores, this achievement represents 97% of the intended goal. In terms of volume, India manufactured an impressive 2.45 billion units of mobile phones during this period, just shy of the targeted 2.5 billion units, as per ICEA reports.
Exports of mobile phones from India have witnessed an astronomical rise, with figures soaring from a modest Rs 1,556 crores in 2014-15 to an estimated Rs 1,20,000 crores in FY24. This exponential growth marks a staggering 7500% increase in mobile phone exports over the decade. The cumulative exports for the period 2014-24 reached an impressive total estimate of Rs 3,22,048 crores, propelling mobile phones to become India’s 5th largest export commodity, following petroleum products, gems and jewellery, engineering goods, and pharmaceuticals.
The industry attributes this phenomenal growth to a conducive policy environment and close collaboration between industry stakeholders and key government ministries such as MeitY, DPIIT, Ministry of Commerce, Ministry of Finance, NITI Aayog, and the Prime Minister’s Office. Initiatives like the Production Linked Incentive (PLI) scheme announced in 2020 and the Phased Manufacturing Programme (PMP) announced in 2017 have played pivotal roles in this transformative journey, transitioning India from an import-dependent nation to an exporter of 30% of its total mobile phone production in the current financial year.
Looking ahead, the industry anticipates that India’s doubling of GDP from the current $3.7 trillion to $7 trillion by 2030 will be driven by growth in the digital sector and trade. Electronics manufacturing, particularly mobile phone production, is poised to play a critical role in this growth trajectory, according to Pankaj Mohindroo, Chairman of ICEA.
Mohindroo emphasized that the next crucial step for the industry is to establish electronics Global Value Chains (GVCs) in India, fostering large-scale manufacturing, job creation, and increased domestic value addition. This ambitious endeavour necessitates unparalleled competitiveness and the establishment of factories capable of operating at a scale unprecedented in India’s history.
