News Brief
India's Mobile Phone Manufacturing Soars 21-Fold To Rs 4.1 Lakh Crore In Last 10 Years: ICEA
An image of mobile phones, for representation purpose (Photo by Daniel Romero on Unsplash)
The India Cellular and Electronics Association (ICEA) stated that mobile phone manufacturing in India has seen a significant surge in value terms, increasing 21-fold to Rs 4.1 lakh crore over the past decade.
This growth has been attributed to government policies, particularly the Production Linked Incentive (PLI) scheme, which has attracted global players to boost local production as per a report by The Economic Times.
India now produces 97 per cent of its total mobile phone demand domestically, with 30 per cent of the total production in the financial year 2024 earmarked for export.
Mobile phone exports from India have seen remarkable growth, increasing from a mere Rs 1,556 crore in 2014-15 to an estimated Rs 1,20,000 crore in FY'24, marking a 7,500 per cent increase over a decade.
Key players like Apple and Samsung have played a crucial role in boosting mobile phone exports from India.
Indian-manufactured devices are now being exported in significant volumes to countries like the UK, Netherlands, Austria, Italy, as well as to markets in the Middle East, North Africa, and South America.
The government's Phased Manufacturing Programme (PMP), launched in May 2017, has been instrumental in promoting domestic production of mobile handsets and building a robust indigenous manufacturing ecosystem. India, from having just 2 mobile phone factories in 2014, has now become the second-largest mobile phone producer in the world.
The PLI scheme for Large-Scale Electronics Manufacturing (LSEM) and IT hardware has further bolstered India's competitiveness in electronics manufacturing. The scheme offers incentives ranging from 3 per cent to 5 per cent of the incremental sales value for a specified period to eligible players.
Leading global contract manufacturers such as Foxconn, Pegatron, Rising Star, and Wistron have been attracted to set up production facilities in India, while Samsung operates its second-largest mobile phone factory in Noida.
ICEA attributed this exponential growth in production, exports, and self-sufficiency to a conducive policy environment and a close working relationship between the industry and key government ministries such as the Ministry of Electronics and IT, DPIIT, Ministry of Commerce, Ministry of Finance, NITI Aayog, and the PMO.
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