India is on the brink of realizing a significant milestone in its mobile phone manufacturing sector, with the industry nearing the target of Rs 20 lakh crore worth of production in the past decade. The India Cellular and Electronics Association (ICEA) revealed that the country has also surpassed Rs 1.20 lakh crore in phone exports in the current fiscal year (FY24), showcasing a remarkable 7,500% increase in exports over the last 10 years.
The mobile phone production target was set by the industry for the period of 2014-2024.
As the decade concludes, cumulative production in India reached Rs 19,45,100 crore, with the production volume of 2.45 billion units of mobile phones, just shy of the 2.5 billion unit goal, according to the ICEA. Remarkably, India now stands as the world’s second-largest producer of mobile phones, with 30% of the production in FY24 dedicated to exports.
The transformation is evident in the shift from 78% import dependence in 2014 to 97% self-sufficiency, with only 3% of total mobile phones sold in India being imported.
In 2014-15, mobile phone exports from India were a mere Rs 1,556 crore. Fast forward to FY24, and the cumulative exports of mobile phones during the 2014-24 period reached an estimated total of Rs 3,22,048 crore, making mobile phones India’s fifth-largest export as an individual commodity.
Chairman of ICEA, Pankaj Mohindroo, emphasized the critical role that electronics manufacturing, particularly mobile production, will play in India’s economic growth. It is anticipated that the doubling of India’s GDP from the current $3.7 trillion to $7 trillion by 2030 will be led by growth in the digital sector and trade.
The growth in production, exports, and self-sufficiency can be attributed to a conducive policy environment and a collaborative effort between the industry and key government ministries. Initiatives like the phased manufacturing program (PMP) introduced in 2017 and the production-linked incentive (PLI) announced in 2020 have been instrumental in transforming India from an import-dependent nation to an economy exporting 30% of its total mobile production in the current financial year.
