“Today, an astounding 99.2% of mobile phones sold in India proudly bear the ‘Made in India’ tag, catapulting the nation to the position of the world’s second-largest mobile phone producer.”
A decade ago, the Indian mobile phone market was heavily reliant on imports, with a mere 26% of devices sold within its borders being manufactured domestically. Fast forward to December 2024, and the landscape has undergone a seismic shift. Today, an astounding 99.2% of mobile phones sold in India proudly bear the ‘Made in India’ tag, catapulting the nation to the position of the world’s second-largest mobile phone producer. This remarkable transformation, fueled by strategic initiatives and a burgeoning manufacturing ecosystem, is a testament to India’s growing prowess on the global stage.
The numbers themselves paint a compelling picture of this industrial revolution. In 2014-15, a mere 26% of the mobile phones finding their way into Indian consumers’ hands were domestically produced. The remaining majority were imports, highlighting a significant dependence on foreign manufacturing. However, the narrative has dramatically flipped. By December 2024, this figure soared to an impressive 99.2%, signifying a near-complete localization of mobile phone production for the domestic market.
This monumental shift is underpinned by a staggering growth in manufacturing infrastructure. In 2014, India could count just two mobile phone manufacturing units within its borders. Today, that number has exploded to over 300, spread across the nation. This expansion reflects a concerted effort to build a robust domestic electronics manufacturing ecosystem. The manufacturing value of mobile phones has witnessed an astronomical rise, jumping from ₹18,900 crore in FY14 to a staggering ₹4,22,000 crore in FY24. Currently, India manufactures between 325 to 330 million mobile phones annually, catering to a domestic market that utilizes approximately a billion devices.
This success story is intrinsically linked to strategic government initiatives, most notably the ‘Make in India’ campaign launched in 2014. Conceived during a period of economic slowdown, ‘Make in India’ aimed to transform the nation into a global design and manufacturing hub by attracting investment, fostering innovation, and developing world-class infrastructure. As a pioneering ‘Vocal for Local’ initiative, it sought to not only boost domestic manufacturing capabilities but also showcase India’s industrial potential on a global stage.
The Phased Manufacturing Programme (PMP), notified in 2017, played a crucial role in this transformation. By promoting domestic value addition in mobile phones and their components through a gradual increase in local manufacturing, the PMP incentivized large-scale production and the creation of a strong local ecosystem. This resulted in a steady progression from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) level assembly, significantly increasing the domestic value addition.
Further bolstering this progress was the Production Linked Incentive (PLI) Scheme, introduced in April 2020. This scheme provided financial incentives to eligible companies for incremental sales of domestically manufactured mobile phones and specified electronic components. By attracting investments into the entire mobile phone value chain, including crucial areas like electronic components and semiconductor packaging, the PLI scheme provided a significant impetus to the sector.
The impact of these initiatives is clearly visible in India’s export figures. Mobile phone exports, which were almost negligible at ₹1,566 crore in 2014-15, have surged to an impressive ₹1.2 lakh crore in 2023-24 – a remarkable 77-fold increase. This demonstrates India’s growing competitiveness and its emergence as a key player in the global mobile phone supply chain.
Looking ahead, the future of overall electronics manufacturing in India appears bright. Projections indicate that India’s total electronics production is poised to reach a staggering US$ 300 billion by 2026. Furthermore, India’s semiconductor ecosystem is gaining significant traction, with five landmark projects receiving approval with a combined investment nearing Rs 1.52 lakh crore. This development is crucial for further strengthening the domestic electronics manufacturing capabilities and reducing reliance on foreign suppliers for critical components.
India’s journey to becoming the world’s second-largest mobile phone producer is a compelling narrative of strategic vision, effective policy implementation, and the inherent potential of its manufacturing sector. It serves as a powerful example of how a nation can transform its economic landscape through focused initiatives and a commitment to self-reliance. As India continues to build its electronics manufacturing prowess, it is well-positioned to play an even more significant role in the global technology landscape in the years to come.
References:
https://pib.gov.in/PressReleasePage.aspx?PRID=2115171
https://www.meity.gov.in/static/uploads/2024/12/10fcadec462c330211502fed3d24ea83.pdf
https://www.ibef.org/blogs/india-s-rise-as-the-second-largest-smartphone-manufacturer
