Indian mobile phone manufacturing at Rs 3.5 lakh crore: MoS Chandrasekhar

Surge in exports: Mobile phone manufacturing has surged exponentially to Rs 3.5 lakh crore in 2022-23, the government has stated.

The figures have seen a surge of 1,700 per cent in 7 years, from about Rs 18,900 crore in 2014-15 to Rs 3.5 lakh crore in 2022-23.

Rajeev Chandrasekhar, Minister of State for Electronics and IT while addressing queries in the Lok Sabha said India has evolved from being insignificant in the global electronics supply chain to emerging as a significant and trusted player in the electronics global value chain (GVC).

“To transform our domestic manufacturing from import substitution to export-led manufacturing, the government has reduced the basic customs duty (BCD) to 10 per cent (from 15 per cent) on the goods covered under mechanics, die-cut parts and others category for use in the manufacturing of mobile phones,” MoS IT stated.

Mobile phone exports have also witnessed a substantial increase from about Rs 1,566 crore in 2014-15 to about Rs 90,000 crore in 2022-23, which marking an impressive growth in exports by over 5,600 per cent.

The ambitious target of domestic electronic manufacturing at $300 billion by 2026 will be achieved by the government's strategy of broadening and deepening electronics manufacturing in India.

For this, efforts to attract global electronics manufacturers and brands as well as developing component ecosystems, apart from fostering the design ecosystem will result in cost-related challenges of the industry being mitigated.

The minister explained, “This is proposed to be achieved by building competitiveness and scale by attracting global electronics manufacturers/brands, shifting, and developing sub-assemblies and component ecosystems, building a design ecosystem, nurturing Indian champions, and steadily removing cost disabilities faced by the industry.”

Following the success of the Production-Linked Incentive (PLI) scheme for mobile phones, the government said the PLI for IT hardware and servers will further boost investments in the component ecosystem, enhancing the supply chain within the country.

The minister further added, “Government envisions to position India as a global hub for export-driven manufacturing hub and electronics system design and manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.”