In less than 10 years, India has undergone a remarkable transformation—from heavily relying on mobile phone imports to becoming the third-largest exporter of mobile phones globally, according to a new study by the Centre for Development Studies (CDS).
Led by Professor C. Veeramani, the report credits this shift to key policy reforms, notably the Production Linked Incentive (PLI) scheme launched in 2020, and India’s strategic integration into global value chains (GVCs).
Mobile Phone Exports Skyrocket: From $0.2B to $24.1B
India’s mobile phone exports have grown by over 11,950% since 2017-18, rising from a modest $0.2 billion to a whopping $24.1 billion in 2024-25. This surge represents a structural shift in Indian manufacturing, where exports have now overtaken domestic consumption.
The CDS study notes that since 2018-19, India has consistently posted a net export surplus in mobile phones—an extraordinary achievement for a developing economy.
Domestic Value Addition on the Rise
Beyond exports, the study highlights substantial gains in Domestic Value Addition (DVA):
- Total DVA in 2022-23 stood at 23%, exceeding $10 billion.
- Direct DVA rose 283%, from $1.2 billion to $4.6 billion.
- Indirect DVA jumped 604%, from $470 million to $3.3 billion.
These gains stem from both local manufacturing and service support ecosystems, reflecting stronger domestic linkages.
17 Lakh Jobs and Rising Wages
India’s mobile manufacturing boom has created 17 lakh jobs (direct + indirect) as of 2022-23. Most striking is the 33x rise in export-linked employment, alongside noticeable wage growth in export-driven roles. The benefits of the export push are clearly reaching the workforce.
Industry Reacts: ICEA Sees Vindication
Pankaj Mohindroo, Chairman of ICEA, praised the findings, stating:
“This study reaffirms that integration into global value chains is key to export scale, domestic value addition, and job creation.”
Policy Roadmap: Scaling Beyond Mobile
The CDS report outlines strategies to sustain momentum and replicate this success across the electronics sector:
- Avoid premature localisation; focus on scale and competitiveness.
- Eliminate trade barriers and tariff distortions.
- Improve logistics and attract foreign investment.
- Build an ecosystem that supports innovation and exports.
Final Word: India’s Global Manufacturing Moment
India’s mobile export journey is not just a win for electronics—it’s a blueprint for economic transformation. By combining policy foresight, industrial scale, and global integration, India is proving it can become a manufacturing powerhouse that competes—and thrives—on the world stage.
