In a stunning transformation, India has emerged as the world’s third-largest exporter of mobile phones, clocking exports worth ₹1,77,141 crore (US$ 20.5 billion) in calendar year 2024 (CY24). This massive leap, as highlighted in a comprehensive study by the Centre for Development Studies (CDS), reflects India’s successful pivot from a mobile phone import-reliant market to a powerful exporter on the global stage.

From Import-Dependence to Export Powerhouse

India’s transition in the mobile manufacturing ecosystem began in earnest around 2017, with a strategic push towards local production. The watershed moment came in 2020 with the launch of the Production Linked Incentive (PLI) scheme, a policy designed to attract investment in electronics manufacturing and incentivize production at scale.

In 2017-18, mobile exports stood at a mere ₹1,728 crore (US$ 200 million). By 2024-25, they skyrocketed to ₹2,08,248 crore (US$ 24.1 billion) — representing a staggering 11,950% increase over a span of just seven years. This level of growth is virtually unparalleled in the context of developing economies, many of which continue to struggle with heavy reliance on imports and weak industrial base.

Key Drivers of Growth

Several structural and policy factors have contributed to India’s meteoric rise in mobile exports:

• PLI Scheme Impact: The PLI scheme provided fiscal incentives to manufacturers based on incremental production, thus ensuring that production growth directly translated into government support. This led global giants like Apple, Samsung, Foxconn, and Wistron to scale up their operations in India.

• Global Value Chain (GVC) Integration: India's deeper integration into global supply chains allowed it to become a reliable manufacturing base, especially amid China’s geopolitical and cost challenges.

• Shift from Import to Export Orientation: For the first time in India’s industrial history, exports in this segment began outpacing domestic consumption, indicating a rare success in achieving competitiveness in the international market.

Domestic Value Addition (DVA) on the Rise

The CDS study emphasizes a substantial rise in Domestic Value Addition (DVA), a critical metric for assessing how much of the value in exported products originates within India:

• DVA accounted for 23% of total production value in 2022-23, amounting to ₹86,410 crore (US$ 10 billion).

• Direct DVA — value created directly by manufacturers — rose by 283% to reach ₹39,749 crore (US$ 4.6 billion) between 2019-20 and 2022-23.

• Indirect DVA — generated by suppliers, component makers, and service providers — grew sixfold, touching ₹28,515 crore (US$ 3.3 billion).

These figures signal a growing maturity in India’s electronics manufacturing ecosystem, with more components and services being sourced locally rather than imported.

Employment and Wage Growth

India’s export-led mobile manufacturing boom has translated into substantial employment gains:

• Over 17 lakh jobs have been created across the sector.

• Export-linked employment has increased more than 33 times since the inception of key policy measures.

• Wages in export-oriented manufacturing roles have improved significantly, pointing to inclusive and broad-based economic gains.

These employment trends are crucial for India, given its demographic dividend and the need for large-scale job creation in the formal sector.

Policy Lessons and Recommendations

The CDS study not only celebrates past success but also lays out a roadmap for sustaining and replicating this model across the broader electronics sector:

1. Continue Outward-Oriented Industrial Policies: India should maintain a strategic focus on export-led growth, rather than retreating into protectionism.

2. Improve Logistics and Infrastructure: Better port connectivity, streamlined customs, and robust transport networks will help reduce production and shipping times.

3. Correct Tariff Inefficiencies: Addressing anomalies in import duties and taxes across components and finished goods will enhance India's competitiveness.

4. Scale First, Then Localize: India should prioritize scale-driven production, establishing itself as a dependable global supplier before diving deep into full-fledged localization of all components.

The Apple Effect and Strategic Shifts

One notable driver of India’s mobile export boom has been Apple’s growing manufacturing footprint. As part of its “China Plus One” strategy, Apple has steadily increased its reliance on India for assembling iPhones — especially the premium models — through partners like Foxconn, Pegatron, and Wistron.

This strategic shift has provided India not only with foreign direct investment (FDI) but also with technology transfer, skill development, and integration into premium electronics value chains.

Comparison with Global Peers

By becoming the third-largest mobile phone exporter globally, India now sits behind only China and Vietnam. However, its growth trajectory and DVA figures suggest that India could soon challenge Vietnam’s position — especially if policies remain favorable and industry capabilities continue to expand.

Beyond Mobile Phones: Electronics as the Next Frontier

Encouraged by its success in mobile exports, India is now eyeing similar growth in related electronics sectors:

• Semiconductors and Chip Assembly: The government has introduced separate incentive packages to attract chip manufacturers and ATMP (Assembly, Testing, Marking and Packaging) players.

• Wearables and IoT Devices: The burgeoning global demand for smartwatches, fitness bands, and connected devices opens another area for Indian firms to explore.

• Consumer Electronics and Display Panels: Firms are beginning to establish production lines for televisions, monitors, and even display fabrication — sectors traditionally dominated by East Asia.

Risks and Challenges Ahead

Despite the remarkable achievements, several risks could hamper India's mobile manufacturing momentum:

• Geopolitical Volatility: Global trade tensions or shifting foreign policy alignments could disrupt GVC flows.

• Dependence on Imports for Key Components: While DVA has improved, many critical components like semiconductors and displays are still imported.

• Skill Shortages and Automation: As technology evolves, India will need to invest in upskilling its workforce to handle robotics, AI-enabled assembly lines, and precision manufacturing.

Conclusion: A Model Worth Replicating

India’s transformation into the world’s third-largest mobile phone exporter is a story of strategic vision, policy consistency, and industry-government collaboration. The leap from ₹1,728 crore to ₹2,08,248 crore in less than a decade is not just about numbers — it is about the aspiration of a nation to become a global manufacturing powerhouse.

With continued investment, sharper policy interventions, and a focus on scale and innovation, India is poised to replicate this export-driven success across the broader electronics sector. As global companies diversify their supply chains and seek alternatives to China, India stands tall — not just as a market, but as a dependable and dynamic global production hub.

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