Is India Transitioning from Mobile Phone Assembler to a Global Manufacturing Hub?
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Synopsis
India's transformation from an import-reliant mobile market to a global manufacturing hub is a testament to its evolving industrial ecosystem. With robust export growth and substantial job creation, the country is now the third-largest mobile phone exporter worldwide. Explore how strategic government support and local production advancements have propelled this remarkable change.
Key Takeaways
- India has transitioned from an import-dependent to a global manufacturing hub.
- Mobile phone exports surged from $0.2 billion to $24.1 billion.
- Domestic Value Addition increased to 23%, exceeding $10 billion.
- India is now the world’s 3rd-largest mobile phone exporter.
- Government support and strategic integration into global value chains catalyzed growth.
New Delhi, July 23 (NationPress) Indian mobile exports have surpassed domestic demand, emerging as the key driver of production. The nation has transitioned from an import-dependent mobile market in 2014-15 to a global manufacturing and export powerhouse by 2024-25, according to a recent study.
Since 2018-19, net mobile phone exports have exhibited remarkable growth, soaring from $0.2 billion in 2017-18 to an impressive $24.1 billion in 2024-25.
India is evolving beyond merely assembling imported components to cultivating a robust industrial base where intricate parts are produced locally.
"India's mobile phone production has significantly increased its Domestic Value Addition (DVA), both directly and indirectly through ancillary industries. This indicates a maturing ecosystem with enhanced domestic engagement," stated the study by the Centre for Development Studies (CDS), a social science research institution.
The total DVA, encompassing direct and indirect contributions, rose to 23 percent, surpassing $10 billion in 2022-23.
The country has now positioned itself as the world’s 3rd-largest mobile phone exporter, achieving exports worth $20.5 billion (CY2024). The government's backing since 2017 and strategic incorporation into global value chains (GVCs) following the introduction of the Production Linked Incentive (PLI) scheme have propelled India's success, the findings revealed.
The mobile phone production sector employed 1.7 million workers in 2022-23. The jobs associated with mobile phone exports surged by over 33 times, as reported by the study.
“India’s success reflects the trajectory of other Asian economies—initially achieving scale and subsequently deepening value addition over time. Sustained government support in this domain will be crucial over the next decade,” remarked Professor C. Veeramani, CDS Director and RBI Chair Professor.
“With mobile phone manufacturing serving as a model for growth, India can replicate similar strategies across the electronics sector to establish itself as a global manufacturing leader,” he added.
Reflecting on the study's findings, Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), stated, “This study reinforces ICEA's consistent message that strategic integration into global value chains is vital for boosting exports, enhancing domestic value addition, and generating employment.”
“The evidence unequivocally supports our view that India’s involvement in backward-linked GVCs has yielded significant benefits for the nation,” he concluded.
Point of View
I emphasize that India's rapid transition into a global manufacturing leader in mobile phones reflects its strategic planning and policy effectiveness. It is crucial for the nation to maintain this momentum, focusing on enhancing domestic production capabilities and fostering global partnerships.
NationPress
23/07/2025
Frequently Asked Questions
How has India's mobile phone export evolved?
India's mobile phone exports grew from $0.2 billion in 2017-18 to $24.1 billion in 2024-25, highlighting a significant evolution in its export capacity.
What is the significance of Domestic Value Addition (DVA)?
DVA measures the contribution of domestic production in manufacturing. India's DVA rose to 23%, indicating a strong local manufacturing base.
How many people are employed in India's mobile manufacturing sector?
The mobile phone production sector employed 1.7 million workers in 2022-23, showcasing its importance in job creation.
What role has the government played in this transformation?
Government support, particularly through the Production Linked Incentive (PLI) scheme, has been crucial in integrating India into global value chains and boosting exports.
What can other sectors learn from mobile manufacturing?
Mobile manufacturing provides a successful blueprint that can be replicated across various electronics sectors to enhance India’s global manufacturing positioning.
