Mumbai, July 24, 2025 – India's mobile phone manufacturing sector has undergone a seismic shift, transforming the nation from an import-reliant market into a formidable global export powerhouse. A recent study by the Centre for Development Studies (CDS) paints a vivid picture of this remarkable journey, highlighting India's ascent to the world's third-largest mobile exporter.

From Import Dependency to Export Leadership

In less than a decade, India has dramatically reshaped its position in the global mobile phone landscape. Mobile phone exports reached an impressive Rs. 1,77,141 crore (US$ 20.5 billion) in Calendar Year 2024. This monumental growth is a direct result of strategic policy interventions and deeper integration into global value chains (GVCs). The transformation, which began around 2017, was significantly accelerated by the Production Linked Incentive (PLI) scheme launched in 2020 to encourage large-scale electronics manufacturing and exports. The study, which documents this remarkable pivot, was led by Professor C. Veeramani, Director of CDS and RBI (Reserve Bank of India) Chair Professor.

Staggering Growth and Structural Shift

The figures underscore a profound structural shift in India's manufacturing orientation:

• 11,950% Growth: Mobile exports skyrocketed from just Rs. 1,728 crore (US$ 200 million) in 2017-18 to an astonishing Rs. 2,08,248 crore (US$ 24.1 billion) in 2024-25.

• Exports Outpace Domestic Consumption: Uniquely for a developing economy, exports now serve as the primary driver of production growth, consistently recording a positive net export trend since 2018-19.

Rising Domestic Value Addition and Job Creation

The growth isn't just in volume; it's also in domestic capability:

• 23% Domestic Value Addition (DVA): Total DVA (direct + indirect) reached a significant 23% of production value in 2022-23, amounting to over Rs. 86,410 crore (US$ 10 billion).

• Direct DVA Surge: Direct DVA increased by 283% to Rs. 39,749 crore (US$ 4.6 billion) between 2019-20 and 2022-23.

• Indirect DVA Multiplies: Indirect DVA, contributed by component suppliers and service providers, grew over sixfold to Rs. 28,515 crore (US$ 3.3 billion), indicating a maturing domestic ecosystem. These estimates were derived from the Annual Survey of Industries (ASI), the Ministry of Commerce’s export-import databank, and industry inputs.

• Employment Boom: The sector has expanded to create over 17 lakh jobs as of 2022-23, with export-linked employment growing more than 33 times. Wages in these export-oriented roles have also seen notable improvements, signifying inclusive growth.

Industry Support and Policy Direction

Reacting to the findings, Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association (ICEA), affirmed the report's significance: "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.”

Blueprint for Future Growth

The CDS report offers a clear roadmap for sustaining this momentum and replicating success across the broader electronics sector:

• Outward-Oriented Industrial Policy: Continue to prioritize policies that encourage exports.

• Improved Logistics: Enhance infrastructure to support efficient trade.

• Address Tariff Inefficiencies: Resolve trade distortions that hinder competitiveness.

• Focus on Scale: Prioritize large-scale production over premature localization, to keep costs low and output high.

• Attract Foreign Direct Investment: Build a robust supporting ecosystem to draw in more investment.

The key message from the study is clear: India’s manufacturing strength must be built on global competitiveness, not protectionism. With these strategic interventions, India is well-positioned to cement its status as a global manufacturing leader, leveraging the mobile phone sector's success as a blueprint for the entire electronics industry.