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India manufactured 2.45 billion mobile phone units valued at INR 4.1 trillion, up from INR 18,900 crore in 2014-15, as per ICEA.
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The industry anticipates INR 1.2 trillion in exports by the end of FY24, marking a 7,500% surge in a decade.
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Mobile phones have ascended to become India's fifth-largest individual commodity export, propelled by this export upsurge.
India's electronics manufacturing industry has achieved remarkable success over the past decade, solidifying its position as the world's second-largest mobile phone manufacturer. The India Cellular and Electronics Association (ICEA), representing major smartphone brands and manufacturers, reported impressive figures, highlighting the sector's exponential growth and strategic planning.
Decade in Review
Production Milestones: The ICEA revealed that the sector concluded the decade with the production of 2.45 billion mobile phone units, valued at Rs 4.1 lakh crore in FY24. This marks a substantial leap from the Rs 18,900 crore worth of mobile phones produced a decade earlier. The industry, with an initial target of Rs 20 lakh crore over ten years, came close with a cumulative production value of Rs 19.45 lakh crore.
Export Success: Mobile phone exports played a pivotal role in this achievement, totaling an estimated Rs 3.22 lakh crore over the decade and making it India's fifth-largest exported product. In the current fiscal year, the industry anticipates that 30% of its output will be exported, showcasing India's growing influence in the global electronics market.
Transformative Shift
Reduced Dependency on Imports: In a significant turnaround, the sector, once 78% dependent on imports in 2014, achieved 97% self-sufficiency in 2024. This remarkable transformation underscores India's local manufacturing capabilities, with only 3% of mobile phones sold in the country being imported.
Strategic Planning and Collaboration: The ICEA attributed this success to a favorable policy climate and close collaboration between the industry and key government departments. Pankaj Mohindroo, Chairman of ICEA, emphasized the critical role of electronics manufacturing, especially mobile phone production, in leading India's economic growth.
Building for the Future
Government Support and Initiatives: India's government has played a crucial role in fostering the sector's growth through supportive policies, including incentives under schemes like the Production Linked Incentive (PLI) scheme. These initiatives aim to attract international investment and enhance India's competitiveness on the global stage.
Diversification and Ancillary Sectors: The success in mobile manufacturing opens avenues for the development of ancillary sectors, including component manufacturing and semiconductor fabrication. This not only increases domestic value addition but also reduces dependencies on foreign sources for critical components.
Employment and Skill Development: The industry's expansion is expected to create millions of direct and indirect jobs, ranging from assembly line roles to high-skilled engineering positions. This fosters an environment conducive to technological innovation and encourages research and development activities.
Sustainability and Global Impact
Environmental Responsibility: India is making strides in adopting green manufacturing practices and emphasizing the responsible disposal of electronic waste. These efforts align with global sustainability goals, positioning India as a responsible player in the international electronics manufacturing industry.
Global Collaboration: India's rise as a leading mobile phone manufacturer enhances its strategic importance in the electronics supply chain. This could lead to closer collaboration and partnerships with other countries, reducing dependencies on single sources.
As India continues its trajectory of growth and innovation in mobile phone manufacturing, it not only cements its position as a production hub but also as a center for excellence in electronics. The country's journey from import dependence to becoming a global manufacturing powerhouse serves as a model for other sectors and countries aiming for technological self-reliance and economic prosperity. With a focus on sustainability, innovation, and global collaboration, India's electronics industry is poised for further expansion and influence on the world stage.
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