The growth of mobile phone production in India over a decade is being described as an unmatched success story in the manufacturing sector. According to India Cellular & Electronics Association (ICEA), mobile phone production has surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4.10 lakh crore in FY24, registering over a 20 fold increase. Cumulatively, over 245 crore mobile phone sets have been produced in India during the last 10 years.
In 2014-15, mobile phone exports from India were a mere Rs 1,556 crore. The industry expects to end FY24 with an estimated export of Rs 1,20,000 crore. This exponential growth in production, exports, and self-sufficiency stems from a conducive policy environment and a close working relationship between industry and key government Ministries such as the Ministry of Electronics & IT, DPIIT, Ministry of Commerce, Ministry of Finance, NITI Aayog, and the PMO.
From just two mobile phone factories in 2014, India now has become the second largest mobile phone producer in the world. The Production Linked Incentive (PLI) scheme for Large-Scale Electronics Manufacturing (LSEM) and for IT hardware is advancing towards making India a competitive destination for electronics manufacturing. The PLI scheme offers incentives ranging from 3 per cent to 5 per cent of the incremental sales value for a stipulated period to eligible players.
The PLI scheme has attracted leading global contract manufacturers, including Foxconn, Pegatron, Rising Star, and Wistron, to set up a production base in India. Samsung operates the world’s largest mobile phone factory in Noida. India-manufactured devices are being exported in large volumes to the UK, Netherlands, Austria, and Italy, besides the Middle East, North Africa, and South American markets. The outlook for mobile phone and electronics manufacturing in India remains upbeat.
