Mobile phone manufacturing has witnessed a remarkable surge in India, with production soaring from around Rs 18,900 crore in 2014-15 to approximately Rs 3,50,000 crore in 2022-23, marking an astounding increase of over 1,700 percent, according to government data disclosed on Wednesday.
Responding to an inquiry in the Lok Sabha, Rajeev Chandrasekhar, Minister of State for Electronics and IT, highlighted India's significant progress in the global electronics supply chain, evolving from a marginal participant to a pivotal and reliable contributor. Chandrasekhar elaborated on the government's efforts to transition domestic manufacturing from import substitution to export-oriented production by reducing the basic customs duty (BCD) to 10 percent for various components used in mobile phone manufacturing, down from the previous 15 percent.
India has now secured its position as the second-largest mobile phone manufacturer globally in terms of volume. Furthermore, the export of mobile phones has seen an exponential surge from approximately Rs 1,566 crore in 2014-15 to an estimated Rs 90,000 crore in 2022-23, marking an impressive escalation of over 5,600 percent. The government has set an ambitious target of achieving domestic electronic manufacturing worth $300 billion by 2026. To accomplish this objective, the strategy focuses on enhancing competitiveness and scale by attracting global electronics manufacturers and brands, bolstering sub-assemblies and component ecosystems, nurturing indigenous champions, and progressively addressing industry-related cost impediments.
Building upon the success of the Production-Linked Incentive (PLI) scheme for mobile phones, the government anticipates that extending PLI benefits to IT hardware and servers will further catalyze investments in the component ecosystem and fortify the supply chain within the country. The government aspires to position India as a premier global destination for export-oriented manufacturing and electronics system design and manufacturing (ESDM) by fostering capabilities for developing essential components such as chipsets and fostering a conducive environment for industry competitiveness on the global stage.