India's Mobile Manufacturing Surge: From Imports to Export Powerhouse

According to a study by the Centre for Development Studies, India has seen tremendous growth in its mobile manufacturing sector. This growth has propelled the country to become the third-largest exporter of mobile phones globally, with exports projected to reach USD 24.1 billion by 2024-25. The rapid expansion from a mere USD 0.2 billion in exports in 2017-18 is attributed to strategic government policies and integration into global value chains.

The research, led by Professor C Veeramani, highlights a significant transition for India from a market reliant on imports in 2014-15 to a leading export hub. Notably, domestic value addition has increased, indicating a strengthening local ecosystem. Reports from the Annual Survey of Industries show direct domestic value addition rising to USD 4.6 billion between 2019-20 and 2022-23, while indirect value addition soared to USD 3.3 billion.

Employment connected to mobile manufacturing, both direct and indirect, has surged to over 17 lakh by 2022-23. Export-related jobs have grown substantially, alongside an upswing in wages, particularly in export-linked roles. Experts emphasize that maintaining an outward-oriented strategy and addressing trade policy issues are vital for sustaining this momentum and positioning India as a global manufacturing leader.

(With inputs from agencies.)