India Cellular and Electronics Association (ICEA) reports that the country’s electronics manufacturing sector has achieved its ten-year aim and is now the world’s second-largest producer of mobile phones.

Top smartphone companies like Apple, Xiaomi, Oppo, and Vivo are represented by ICEA, which reports that India produced 2.45 billion mobile phones valued at INR 4.1 lakh crore in 2015–16 as opposed to INR 18,900 crore in 2014–15.

The trade association added that the industry has moved from 78% import dependency in 2014 to 97% self-sufficiency at present. Just 3% of all mobile phones sold in India are foreign, according to Moneycontrol.

“It is believed that the doubling of India’s GDP from the current $3.7 Tn to $7 Tn by 2030 will be led by growth in the digital sector and trade. In both these areas, electronics manufacturing led by mobile production will play a critical role,”said Pankaj Mohindroo, Chairman, ICEA. 

“As a next step, we have to ensure that we can shift electronics GVCs to India to create large-scale manufacturing jobs and increase domestic value addition. This, in turn, requires unprecedented competitiveness and factories that can operate at the scale of the kind that has never been witnessed in India”, he continued.

Over the course of 2014–24, mobile phone exports totaled an estimated INR 3.2 lakh crore. Mobile phones are currently India’s fifth-largest export as a single commodity, driven by this surge in exports.

With a projected INR 1.2 Lakh Cr in exports by the end of FY24, the industry anticipates a 7,500% rise in exports over the previous ten years.

This occurs at a time when the majority of international smartphone makers are focusing on the Indian market. Nothing, the most recent, is cofounder of OnePlus Carl Pei.

Because of the increasing geopolitical tensions between Beijing and Washington DC, as well as the numerous incentives being offered by the Indian government, several of them are moving a portion of their manufacturing from China to India.

To entice these original equipment manufacturers (OEMs), the Centre has established a production-linked plan (PLI), and state and local governments have thrown up their arms and offered incentives like expedited land acquisition and permits.

As a result, an increasing number of businesses are heading straight for India. A few weeks ago, Dixon Technologies and Karbonn Group, two Indian manufacturers, announced a collaboration with BBK Group, a Chinese phone manufacturer, to produce their Oppo, Vivo, and Realme smartphones.

Google also declared late last year that it will produce Pixel smartphones domestically. In the meantime, Apple has been quickly expanding its manufacturing operations in India, where it currently produces about 7% of all iPhones made worldwide. In 2023, Apple produced iPhones in India valued at INR 1 Lakh Cr.