India Became World's 2nd largest mobile manufacturer

1. By 2025, India has achieved remarkable progress in the mobile and electronics manufacturing sectors, firmly establishing itself as the world’s 2nd-largest mobile manufacturer.
2. This growth is a direct result of the 'Make in India' initiative launched by Prime Minister Narendra Modi in 2014, which has successfully boosted domestic production, propelled exports, and created millions of jobs.

Key Highlights of India's Mobile Manufacturing Growth

Year	Number of Manufacturing Units	Notes
2014	2	Limited infrastructure and investment
2025	Over 300	Exponential growth and strategic investments

Year	Percentage of Locally Made Phones	Notes
2014-15	26%	Heavy reliance on foreign manufacturers
2025	99.2%	Robust domestic manufacturing ecosystem

Financial Year	Production Value (₹ crore)	Notes
FY14	18,900	Relatively small and underdeveloped sector
FY24	4,22,000	Substantial increase and economic contribution

Year	Export Value (₹ crore)	Notes
2014	Negligible	Focus on meeting domestic demand through imports
2024	1,29,000	Significant shift to becoming a global exporter

Historical Context: The Dominance of China

1. China has been the dominant global player in manufacturing for decades.
2. By 2020, China was the world's largest exporter, with exports valued at $249 billion.
3. Early 2010s Mobile Manufacturing in India:
   1. 80% of mobile phones in India were imported from China.
   2. India was highly dependent on foreign manufacturers, lacking significant domestic production capacity.
4. However, a strategic shift in the country’s approach to manufacturing, especially through government-led initiatives, has turned this situation around dramatically.

Key Government Initiatives Fueling Growth

1. Make in India Initiative (2014)

1. Launched in 2014, the Make in India initiative was designed to encourage both foreign and domestic companies to manufacture goods in India, including mobile phones.
2. Moving deeper into the value chain by producing not only mobile phones but also critical components such as chargers, battery packs, USB cables, Lithium-Ion Cells, microphones, and camera modules.
3. The program aimed to make India a self-reliant hub, ensuring that production and assembly would occur domestically, reducing dependency on foreign manufacturers.

2. Semiconductor Manufacturing: Enhancing Self-Reliance

1. In 2021, the India Semiconductor Mission was launched with an investment of ₹76,000 crore to establish a robust semiconductor manufacturing base.
2. This is a crucial component of India’s goal to become a leader in the electronics sector.
3. 5 major projects, including those by Micron, Tata Electronics, CG Power, and Keynes, have been approved under this mission.

3. Production Linked Incentive (PLI) Scheme (2020)

1. The PLI Scheme, introduced in April 2020, has been one of the most influential policy interventions in India’s mobile manufacturing boom. Its goals include:
2. Boosting domestic manufacturing and attracting large-scale investments in the mobile phone and electronics components sectors.
3. Incentivizing companies to increase production and enhance export potential.

Job Creation: Economic Upliftment and Socio-Economic Impact

1. The expansion of India’s electronics manufacturing sector, driven by initiatives like Make in India and the PLI Scheme, has not only boosted production but also created approximately 12 lakh direct and indirect jobs over the past decade.
2. These jobs have improved the economic status of numerous families, contributing to India’s socio-economic growth. Some key job creation statistics include:
3. Direct Jobs: Several hundred thousand jobs have been created in mobile manufacturing, assembly, and the supply chain.
4. Indirect Jobs: A much larger number of jobs have been created in related industries, such as logistics, retail, and research & development.

Economic Impact: Surging Exports and Growing Market Share

India’s mobile manufacturing sector has grown significantly in recent years:

1. Mobile Exports: From negligible exports in 2014, mobile phone exports have reached ₹1,29,000 crore in 2024.
2. India now exports to global markets like the UK, Netherlands, Austria, South Africa, and others.

Conclusion: India’s Future as a Global Mobile Manufacturing Hub

India’s transformation into the world’s second-largest mobile manufacturer is a monumental achievement that reflects the country’s strategic and consistent efforts to boost domestic production. Through initiatives like Make in India, the PLI Scheme, and the India Semiconductor Mission, India has turned into a self-reliant manufacturing powerhouse.

 

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