India has undergone a remarkable transformation in its mobile phone sector, emerging as the world’s third-largest exporter of mobile phones. In 2024 alone, the country exported mobile phones worth USD 20.5 billion—a dramatic leap from just USD 0.2 billion in 2017-18. This phenomenal growth is the focus of a new study by the Centre for Development Studies (CDS), led by Professor C. Veeramani, which attributes this shift to strategic policy interventions and deeper integration into global value chains.
The pivotal moment came with the launch of the Production Linked Incentive (PLI) scheme in 2020, designed to boost large-scale electronics manufacturing and exports. The study describes India’s journey as mirroring that of other successful Asian economies—achieving scale first, followed by increasing value addition over time. With mobile phone manufacturing serving as a blueprint, experts believe India is now well-positioned to replicate this model across the broader electronics sector.
From Imports to Export Dominance
Back in 2014-15, India relied heavily on imports to satisfy domestic mobile phone demand. However, by 2024-25, exports surged to USD 24.1 billion—marking a staggering 11,950% increase in less than a decade. This shift signifies a structural change in India’s manufacturing landscape, where export volume has surpassed domestic consumption—an uncommon feat among developing economies. The country has maintained a strong positive net export trend in mobile phones since 2018-19.
Rising Domestic Value Addition
One of the most encouraging findings of the CDS study is the steady rise in Domestic Value Addition (DVA), both direct and indirect. Total DVA accounted for 23% of the sector’s production value in 2022-23, exceeding USD 10 billion. Direct value addition grew by 283%, while indirect value addition—including inputs from local suppliers and service providers—soared by 604%.
Job Creation and Better Wages
The boom in mobile phone manufacturing has also had a transformative effect on India’s labour market. According to Annual Survey of Industries (ASI) data, the sector now employs over 17 lakh people as of 2022-23. Notably, jobs linked directly to exports have grown more than 33 times during this period. Export-oriented roles are also seeing significant wage increases, indicating that the benefits of the sector’s growth are reaching workers through improved income and expanded employment opportunities.
With these successes, India’s mobile phone sector stands as a shining example of how thoughtful policy, global integration, and domestic capability-building can combine to create a globally competitive manufacturing hub.
