India is on the verge of accomplishing its target of producing mobile phones worth Rs 20 lakh crore over the past decade, while also surpassing Rs 1.20 lakh crore in phone exports in the current fiscal year (FY24). This remarkable achievement represents a staggering 7,500 percent increase in exports over the span of a decade, as reported by the top electronics industry body, the India Cellular and Electronics Association (ICEA), on Thursday.
The industry had set a goal of achieving Rs 20 lakh crore worth of mobile phone production between 2014 and 2024. As per the ICEA, the industry concluded the decade with cumulative production reaching Rs 19,45,100 crore. Despite slightly falling short of the volume target, with 2.45 billion units produced against a goal of 2.5 billion units, India now stands as the world’s second-largest producer of mobile phones. Furthermore, 30 percent of production in FY24 is expected to be earmarked for exports
The mobile phone sector has undergone a significant transformation, transitioning from being 78 percent import-dependent in 2014 to now being 97 percent self-sufficient. Currently, only 3 percent of the total mobile phones sold in India are imported. Notably, in 2014-15, mobile phone exports from India amounted to a mere Rs 1,556 crore.
Pankaj Mohindroo, Chairman of ICEA, highlighted the pivotal role of electronics manufacturing, particularly mobile phone production, in driving India’s economic growth. He emphasized that the doubling of India’s GDP to $7 trillion by 2030 will be fueled by growth in the digital sector and trade, with electronics manufacturing playing a critical role.
Mobile phone production has witnessed a remarkable surge from Rs 18,900 crore in 2014-15 to an estimated Rs 4,10,000 crore in FY24, marking a staggering increase of 2,000 percent, according to the ICEA. Additionally, cumulative exports of mobile phones during the period 2014-24 reached a total estimate of Rs 3,22,048 crore, signaling a new era in India’s exports.
This exponential growth in production, exports, and self-sufficiency can be attributed to a conducive policy environment and close collaboration between the industry and key government ministries such as MeitY, DPIIT, Ministry of Commerce, Ministry of Finance, NITI Aayog, and the Prime Minister’s Office (PMO).
Initiatives such as the phased manufacturing program (PMP) announced in 2017 and the production-linked incentive (PLI) announced in 2020 have played a crucial role in this leap, transforming India from an import-dependent nation to an economy expected to export 30 percent of its total mobile production in the current financial year, according to the industry body.
