New Delhi: Indian mobile exports beat domestic demand to become the primary driver of production, as the country moved from an import-reliant mobile market in 2014-15 to a global production and export hub in 2024-25, a study showed on Wednesday.
Since 2018-19, mobile phone net exports have been strong, as exports rising from $0.2 billion in 2017-18 to $24.1 billion in 2024-25.
India is moving beyond just assembling imported parts to a deeper industrial base where complex components are manufactured locally.
“India’s mobile phone production saw a significant rise in Domestic Value Addition (DVA), both directly and through supporting industries. This suggests a maturing ecosystem with stronger domestic participation,” said the study by the Centre for Development Studies (CDS), a social science research centre.
The total DVA (direct + indirect) increased to 23 per cent, amounting to more than $10 billion in 2022-23.
The country is now the world’s 3rd-largest exporter of mobile phones clocking $20.5 billion (CY2024) worth of exports. Government support since 2017 and strategic integration into global value chains (GVCs) after the launch of the Production Linked Incentive (PLI) scheme drive Indian success, the findings showed.
Mobile phone production industry employs 17 lakh workers in 2022-23. Jobs linked to exporting of mobile phones surged by over 33 times, the study found.
“India’s success mirrors the path taken by other Asian economies — achieving scale first and deepening value addition over time. Continued government support in this space will remain critical over the next decade,” said Professor C. Veeramani, CDS Director and RBI Chair Professor.
“With mobile phone manufacturing providing a blueprint for growth, India can replicate similar strategies across the electronics sector to position the country as a global manufacturing leader,” he added.
On the findings of the study, Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA), said, “This study reaffirms what ICEA has consistently advocated that strategic integration into global value chains is critical for scaling exports, enhancing domestic value addition, and creating jobs”.
“The evidence clearly validates our position that India’s participation in backward-linked GVCs has delivered substantial gains to the country,” he added.
(IANS)
