Union Minister Ashwini Vaishnaw announced a groundbreaking achievement for India’s mobile manufacturing sector, revealing that the industry now boasts a value exceeding $44 billion, with over 99% of mobile phones being produced domestically. The minister addressed the media on the nation’s progress in electronics manufacturing, shedding light on the remarkable strides made in both production volumes and the value chain.
Vaishnaw, in a lighter vein, noted that despite the overwhelming evidence of domestic production, there still exists a misconception among certain opposition leaders that mobile phones are imported. He emphasized the industry’s substantial growth from a nascent sector to a $44 billion giant, expressing optimism that it is on track to surpass $100 billion in the near future.
The minister highlighted India’s success not only in increasing production volumes but also in advancing up the value chain. A significant number of components are now manufactured within the country. India has set a formidable target of manufacturing electronics products worth $300 billion by 2025-26 and is actively enticing device manufacturers to expand beyond China through attractive incentives offered under the production-linked incentive (PLI) schemes.
In recent times, Apple has expanded local manufacturing of its high-end iPhone models in India, with plans to increase production to over $40 billion in the next 4-5 years. Google is also set to manufacture its Pixel smartphones in India, with initial devices expected to hit the market in 2024.
India’s progress in electronics over the past 9.5 years positions it for export-led growth. Vaishnaw highlighted the successful establishment of a chip production plant, underscoring the employment opportunities generated by the industry despite criticism from some quarters.
The ‘Make in India’ initiative for mobile phone manufacturing reached a significant milestone in 2022, with over 2 billion units shipped, supported by a remarkable Compound Annual Growth Rate (CAGR) of 23% over 9 years. India’s emergence as the world’s second-largest mobile phone producer can be attributed to factors such as increased domestic demand, higher digital literacy, and proactive government support.
