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India becomes world's 3rd-largest mobile exporter at $20.5 billion: Study

India becomes world's 3rd-largest mobile exporter at $20.5 billion: Study

Time of India4 days ago
In less than a decade, India has transformed itself from a heavily import-dependent mobile phone market to the world's third-largest exporter of mobile phones, clocking exports worth USD 20.5 billion in calendar year 2024. This dramatic shift is at the heart of a new study by the Centre for Development Studies (CDS), which highlights how policy interventions and integration into global value chains have powered this rise.
Led by Professor C. Veeramani, Director of CDS and RBI Chair Professor, the study documents India's remarkable pivot that began around 2017, accelerating sharply after the government launched the Production Linked Incentive (PLI) scheme in 2020 to encourage large-scale electronics manufacturing and exports.
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'India's success mirrors the path taken by other Asian economies, achieving scale first, and deepening value addition over time,' said Prof. Veeramani, highlighting how exports have now become the primary engine of growth for the sector. 'With mobile phone manufacturing providing a blueprint for growth, India can replicate similar strategies across the electronics sector to position the country as a global manufacturing leader.'
From imports to exports
In 2014-15, India was overwhelmingly reliant on mobile imports to meet domestic demand. Fast forward to 2024-25, and the country has recorded mobile phone exports of USD 24.1 billion, a more than 11,950% increase from just USD 0.2 billion in 2017-18. The report calls this a 'structural shift' in the nature of Indian manufacturing, where exports now outpace domestic consumption, a rarity in most developing economies.
'The country has been recording a robust positive net export trend in mobile phones since 2018-19,' the study noted, pointing to a consistent export surplus.
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Domestic value addition on the rise
One of the key highlights of the study is the increase in Domestic Value Addition (DVA), both directly by manufacturers and indirectly through local suppliers and service providers.
According to the study:
Total DVA (direct + indirect) stood at 23% of production value in 2022-23, exceeding USD 10 billion.
Direct DVA rose from USD 1.2 billion (2016-17 to 2018-19) to USD 4.6 billion (2019-20 to 2022-23), a 283% jump.
Indirect DVA, which includes backward linkages like component manufacturing and service support, grew from USD 470 million to USD 3.3 billion, a 604% surge.
These estimates were derived from the Annual Survey of Industries (ASI), the Ministry of Commerce's export-import databank, and industry inputs.
Employment and wage growth
The mobile phone boom is also reshaping India's labour market. According to ASI data, the sector—counting both direct and indirect jobs, now employs over 17 lakh people as of 2022-23. Even more strikingly, export-linked employment has grown more than 33-fold during this period.
The study also points to encouraging trends in wage growth, especially in jobs tied to exports. These roles are seeing notable income gains, suggesting that the benefits of the export boom are reaching workers through better compensation and job creation.
Industry support and policy direction
Reacting to the findings, Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association (ICEA), said the report affirms the group's long-standing position.
'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.'
The road ahead
The CDS report offers clear policy prescriptions to ensure this momentum is sustained. Chief among them:
Maintain an outward-oriented industrial strategy.
Address tariff and trade distortions that hinder competitiveness.
Prioritise scale over premature localisation, to keep costs low and output high.
Improve logistics infrastructure, attract foreign direct investment, and build a robust supporting ecosystem.
The key message: India's manufacturing strength must be built on global competitiveness, not protectionism.
As global demand for electronics continues to rise, India's mobile manufacturing success story could serve as a template for other sectors. With the right mix of scale, policy stability, and value chain integration, India is positioning itself not just as a manufacturing hub, but as a global production powerhouse.
With inputs from ANI
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