Make in India Takes Off, Mobile Phone Production Soars 1700%
India has emerged as a global manufacturing hub, particularly in mobile phone production. With exponential growth rates and ambitious government initiatives, the country has firmly positioned itself as a trusted player in the global electronics supply chain.
According to recent statements made by IT Minister Rajeev Chandrasekhar in the Lok Sabha, mobile phone manufacturing in India has experienced a staggering increase of over 1,700% in the past decade. From a negligible presence in the global electronics supply chain, India has swiftly transitioned into a significant contributor, showcasing its potential to compete internationally.
The statistics are nothing short of impressive. Mobile phone manufacturing in India surged from approximately Rs 18,900 crore in 2014-15 to a staggering Rs 3,50,000 crore in 2022-23. This exponential growth can be attributed to a combination of factors, including favorable government policies, strategic incentives, and a conducive business environment aimed at promoting domestic manufacturing.
One of the key measures undertaken by the government to bolster the manufacturing sector is the reduction of basic customs duty (BCD) on essential components used in mobile phone manufacturing. By slashing the BCD from 15% to 10% on items like mechanics, die-cut parts, and others, the government aims to incentivize local production and pave the way for export-led manufacturing.
India’s ascension to the position of the second-largest manufacturer of mobile phones in volume terms worldwide is a significant milestone in its industrial journey. The exponential increase in mobile phone exports, from Rs 1,566 crore in 2014-15 to an estimated Rs 90,000 crore in 2022-23, underscores the country’s growing influence in the global market.
Looking ahead, the Indian government has set ambitious targets for the domestic electronic manufacturing sector, aiming to achieve $300 billion in production by 2026. With the current electronics production standing at $75 billion, this target represents a substantial leap forward and underscores India’s commitment to becoming a global manufacturing powerhouse.
Key to achieving this goal is the development of competitiveness and scale through the attraction of global electronics manufacturers and brands. Additionally, fostering the growth of sub-assemblies and component ecosystems will be crucial in creating a robust and self-sustaining manufacturing ecosystem.
The government’s vision extends beyond mere production to positioning India as a global hub for export-driven manufacturing and electronics system design and manufacturing (ESDM). By encouraging the development of core components, including chipsets, and creating an enabling environment for industry competitiveness, India seeks to carve out a niche for itself in the global electronics market.