India's mobile phone export rise marks global manufacturing shift

India has emerged as the world’s third-largest exporter of mobile phones, clocking USD 20.5 billion in calendar year 2024, according to a study by the Centre for Development Studies (CDS).

The study highlights India’s journey from being an import-dependent market in 2014–15 to a global production and export hub by 2024–25. This transformation is attributed to strategic integration into global value chains (GVCs), a pivot to an export-driven policy regime, and sustained government support, primarily through the Production Linked Incentive (PLI) Scheme introduced in 2020.

Export-led Output and Domestic Value Addition Rise Fast

According to the CDS report, India’s mobile phone exports have surged from USD 0.2 billion in 2017–18 to USD 24.1 billion in 2024–25—an increase of nearly 11,950%. Export-led production now outpaces domestic demand, indicating a structural shift in the country’s manufacturing model. India has posted a consistent positive net export trend in mobile phones since 2018–19.

India’s mobile phone exports have surged from USD 0.2 billion in 2017–18 to USD 24.1 billion in 2024–25—an increase of nearly 11,950%.

The study also highlights a growing maturity in the domestic manufacturing ecosystem, as evidenced by the increase in Domestic Value Addition (DVA). The total DVA—direct and indirect—stood at 23% in 2022–23, valued at over USD 10 billion. This estimate was based on data from the Annual Survey of Industries (ASI), the Ministry of Commerce, and industry estimates.

Direct DVA rose from USD 1.2 billion during 2016–17 to 2018–19 to USD 4.6 billion between 2019–20 and 2022–23—a 283% increase. Indirect DVA, which refers to value added by domestic suppliers of components and services, grew by 604%, from USD 470 million to USD 3.3 billion in the same period.

Job Creation and Wage Growth Reflect Economic Spillover

The sector has also seen significant employment gains. According to ASI data, more than 17 lakh jobs were directly and indirectly supported by mobile phone production in the 2022–23 fiscal year. Employment linked specifically to exports grew more than 33-fold. Wage levels in export-oriented roles have also seen notable increases, reflecting economic spillovers that benefit income groups across the board.

Professor C Veeramani, Director and RBI Chair Professor, noted that India’s success mirrors the path of other Asian economies. “Exports on a global scale are the foundation for long-term competitiveness, and continued government support in this space will remain critical over the next decade. With the 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,” he said.

India Cellular & Electronics Association (ICEA) Chairman Pankaj Mohindroo said, “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.”

Looking ahead, the study recommends that policymakers maintain an outward-oriented strategy while addressing structural inefficiencies. Key recommendations include liberalising trade policies, addressing tariff-related distortions, and prioritising scale over early localisation mandates. The roadmap also calls for focused investment in logistics, facilitating foreign direct investment, and deeper ecosystem development.

A GVC-centric approach, the report concludes, combined with innovation and local value creation, will be key to strengthening India’s position as a resilient and competitive manufacturing hub.