India Emerges as a Mobile Manufacturing Powerhouse

India’s domestic electronics industry has witnessed a meteoric rise, with 99.2% of mobile handsets used in the country now being manufactured locally, according to Jitin Prasada, Minister of State for Electronics and IT. This marks a dramatic shift from FY2014-15, when 74% of mobile phones sold in India were imported.The domestic electronics production has grown at a robust CAGR of over 17% in the past decade, scaling from ₹1.9 lakh crore in FY2014-15 to a staggering ₹9.52 lakh crore in FY2023-24. To sustain this momentum, the government has rolled out ambitious initiatives like the ₹76,000 crore Semicon India program, and Production Linked Incentive. Despite these achievements, challenges remain. India’s electronics manufacturing still faces a cost disadvantage compared to global competitors due to factors like higher capital expenditure requirements, longer gestation periods, smaller production scales, and difficulties in securing technology transfers.

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