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20th September 2025 (16 Topics)

Mobile Manufacturing Boom

Context:

India has overtaken China as the top smartphone exporter to the United States in Q2 2025, while smartphone exports from India crossed ?1 lakh crore in the first five months of FY 2025-26.

Mobile Manufacturing Boom

  • India is now the second-largest mobile phone manufacturer globally, with over 300 manufacturing units, up from just 2 in 2014.
  • Exports Growth: Mobile phone exports rose from ?1,500 crore in FY 2014-15 to over ?2 lakh crore in FY 2024-25, making smartphones the fourth-largest export item from India.

Government Schemes Driving Growth:

  • Production Linked Incentive (PLI) Scheme (2020) has incentivised large-scale electronics manufacturing.
  • Make in India (2014), Digital India (2015), SPECS, NPE 2019, and ECMS 2025 have collectively strengthened the ecosystem.

Economic Contribution:

  • Electronics production rose from ?1.9 lakh crore in 2014-15 to ?11.3 lakh crore in 2024-25. Mobile phones alone reached ?5.45 lakh crore in production.

Strategic Context:

  • The China+1 strategy has shifted global supply chains towards India, making it a resilient alternative in electronics manufacturing.

Digital Economy Link:

  • By 2029-30, India’s digital economy is projected to contribute nearly 20% of GDP, surpassing agriculture and manufacturing.

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