India has made remarkable strides in mobile and electronics manufacturing, emerging as the world’s 2nd-largest mobile manufacturing country. A decade ago, in 2014, India had only two mobile manufacturing units. Fast forward to today, and the nation now boasts over 300 manufacturing facilities, demonstrating its rapid industrial progress.
Back in 2014-15, merely 26% of the mobile phones sold in India were locally made, with the remaining majority imported. Today, an astounding 99.2% of all mobile phones sold in India are manufactured domestically. The industry’s production value has skyrocketed from ₹18,900 crore in FY14 to an impressive ₹4,22,000 crore in FY24.
The growth in production has also led to a sharp increase in exports. In 2014, India had negligible mobile phone exports. However, today, India’s mobile phone exports have crossed ₹1,29,000 crore, marking a significant shift from dependency on imports to becoming a global exporter.
The expansion of mobile manufacturing has not only boosted production numbers but also significantly contributed to employment generation. Over the past decade, the sector has created approximately 12 lakh direct and indirect jobs, uplifting families and strengthening the country’s socio-economic framework.
The ‘Make in India initiative has played a crucial role in enabling domestic production of key electronic components, including chargers, battery packs, USB cables, display assemblies, camera modules, and even complex parts like lithium-ion cells, speakers, and microphones. This localisation effort is not only reducing dependency on imports but also enhancing India’s capability as an electronics manufacturing hub.
The next step in India’s manufacturing evolution is deepening the value chain, particularly in semiconductor and high-tech component production. Union Minister for Electronics and Information Technology, Railways, and Information & Broadcasting, Sh. Ashwini Vaishnaw highlighted the country’s ambitious goal of establishing a robust semiconductor industry.
Historically, from 1950 to 1990, restrictive policies hindered manufacturing growth. However, the ‘Make in India’ movement is reversing this trend, fostering a robust ecosystem for component and chip production. India’s semiconductor manufacturing journey has been in the making for over six decades, and with recent initiatives, tangible progress is being made.
Under the India Semiconductor Mission, 5 major semiconductor projects have been approved, including:
These developments will play a pivotal role in securing India’s position as a global leader in the electronics market.
Beyond mobile phones, India’s manufacturing resurgence is extending to diverse sectors, including defence equipment, electric vehicle components, and even the toy industry. The vision set forth by Prime Minister Sh. Narendra Modi aims to transform India into a global manufacturing hub, ensuring self-reliance, economic growth, and job creation.
By focusing on innovation, deeper value chain integration, and cutting-edge technology, India is well on its way to establishing itself as a powerhouse in electronics manufacturing. The transition from being an import-dependent country to a significant global exporter underscores the success of the ‘Make in India’ initiative and paves the way for even greater industrial achievements in the coming years.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing
Published on: Feb 5, 2025, 2:31 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates