Mobile phone manufacturing in India has experienced a remarkable 21-fold increase in value, reaching Rs 4.1 lakh crore over the past decade, according to a statement from the India Cellular and Electronics Association (ICEA).
This surge is attributed to government policies such as the Production Linked Incentive (PLI) scheme, which attracted global players and enhanced local production. Currently, India meets 97 per cent of its total mobile phone demand domestically, with 30 per cent of the production in FY’24 earmarked for export, totalling an estimated Rs 1.2 lakh crore.
“Mobile phone production surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4,10,000 crore in FY’24, registering an increase of 2000 per cent,” noted the ICEA. In the same period, mobile phone exports from India are expected to increase from Rs 1,556 crore to an estimated Rs 1,20,000 crore by the end of FY’24, marking a 7500 percent increase in exports over the decade.
Leading global smartphone manufacturers such as Apple and Samsung have played a pivotal role in boosting mobile phone exports from India. Devices manufactured in India are being exported to various countries, including the UK, Netherlands, Austria, Italy, the Middle East, North Africa, and South American markets.
The ICEA highlighted that the PLI scheme, initiated in May 2017, and the Phased Manufacturing Programme (PMP) have been instrumental in promoting domestic production and incentivizing large-scale manufacturing. India, which had only two mobile phone factories in 2014, has now become the second-largest mobile phone producer globally.
The PLI scheme for Large-Scale Electronics Manufacturing (LSEM) and IT hardware offers incentives ranging from 3 to 5 percent of the incremental sales value for a specified period to eligible players. Notable global contract manufacturers like Foxconn, Pegatron, Rising Star, and Wistron have been attracted to set up production bases in India under the PLI scheme, while Samsung operates its second-largest mobile phone factory in Noida.
The ICEA emphasized that the exponential growth in production, exports, and self-sufficiency is a result of a conducive policy environment and close collaboration 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.
