India Among Top 3 Phone-Making Countries in the World
In the past decade, India's electronics production saw a significant increase, multiplying five times to reach Rs 9.5 lakh crore and generating 25 lakh jobs. The mobile manufacturing sector grew from negligible production in 2014 to Rs 4.2 lakh crore in 2023-24, achieving a Compound Annual Growth Rate (CAGR) of 24% over the last four years. Consequently, India is now among the top three mobile manufacturing countries globally, with domestic production meeting 99% of India's mobile phone demand.
Factors Contributing to Growth
- 100% FDI: Permitted for electronics manufacturing under the automatic route.
- Tariff Structure: Tariffs are designed to promote domestic manufacturing of electronic goods, including mobile phones, TV sets, and components.
- Customs Duty: Zero basic customs duty for importers of specified capital goods for manufacturing electronic items.
Key Achievements
- Cumulative Investment: Rs 10,905 crore.
- Cumulative Production: Rs 7,15,823 crore.
- Cumulative Exports: Rs 3,90,387 crore.
- Direct Employment: 1,39,670 jobs created.
- GST Contribution: Rs 1.82 lakh crore paid by mobile manufacturers from 2020-21 to 2023-24.
Government Support: PLI Scheme
- Incentives: Rs 34,193 crore allocated by the Government of India under the Production Linked Incentive (PLI) scheme for Large Scale Electronics Manufacturing (LSEM), with Rs 11,603 crore disbursed by March 2025.
- Scheme Benefits:
- Cumulative Production: Rs 10,365 crore.
- Cumulative Investment: Rs 522 crore.
- Employment: 5,132 direct jobs created.
Incentives for IT Hardware
- Allocation: Rs 17,000 crore set aside by the Government of India under the PLI scheme for IT hardware, with Rs 71 crore disbursed by March 2025.