The value of mobile phone manufacture in India has increased 21-fold to Rs 4.1 lakh crore in the last ten years, according to a statement from industry association ICEA. This growth has been attributed to government policy initiatives like PLI, which have attracted international companies to support local production. 97% of India's demand for mobile phones is now met locally, while 30% of the country's total output in the 2024 fiscal year is slated for export, according to the India Cellular and Electronics Association.
The output of mobile phones increased by 2000%, from an estimated Rs 18,900 crore in 2014–15 to an estimated Rs 4,10,000 crore in FY’24. India's exports of mobile phones totaled at Rs 1,556 crore in 2014–15. The sector projects that its exports would reach Rs 1,20,000 crore by the end of FY24. According to ICEA, this would result in a 7.50% rise in exports over ten years.
As per a manufacturing note, Apple and Samsung have significantly contributed to the increase in mobile phone exports from the nation. In addition to South American and Middle Eastern markets, the paper stated that India is a major exporter of gadgets to the UK, Netherlands, Austria, and Italy.
Now, 30% of production in FY'24 will go toward exports. The sector anticipates exporting Rs 1.2 lakh crore by the end of FY'24. According to the industry group, mobile phones have surged in exports to the point that they are currently India's fifth-largest commodity export.
The Phased Manufacturing Programme (PMP), designed to encourage local manufacture of mobile devices, was launched by the Indian government in May 2017. This program encouraged large-scale production and contributed to the development of a strong domestic mobile manufacturing ecosystem in India. India has grown from having just two cell phone manufacturers in 2014 to becoming the world's second-largest producer of mobile phones.
India is now a competitive location for electronics manufacturing thanks in large part to the Production Linked Incentive plan for IT hardware and Large-Scale Electronics Manufacturing (LSEM).
For a certain period, qualifying players can receive incentives from the PLI system that range from 3 to 5 percent of the increased sales value.
Leading international contract manufacturers, such as Foxconn, Pegatron, Rising Star, and Wistron, have established production bases in India as a result of the PLI plan. In contrast, Samsung has its second-largest mobile phone plant located in Noida.
A favorable policy climate and strong collaboration between business and important government agencies, including the Ministry of Electronics and IT, DPIIT, the Ministry of Commerce, the Ministry of Finance, NITI Aayog, and the PMO, are the main causes of this exponential rise in output, exports, and self-sufficiency, according to ICEA.