As the nation transitioned from an import-dependent mobile market in 2014–15 to a worldwide manufacturing and export hub in 2024–25, Indian mobile exports outpaced domestic demand to take the lead in production, according to a report released on Wednesday.

Net exports of mobile phones have been robust since 2018–19, increasing from $0.2 billion in 2017–18 to $24.1 billion in 2024–25.

India is developing a more sophisticated industrial foundation where sophisticated components are produced domestically, going beyond merely assembling imported parts.

Domestic Value Addition (DVA) increased significantly in India’s mobile phone production, both directly and through related businesses. According to a study conducted by the social science research center Centre for Development Studies (CDS), “this suggests a maturing ecosystem with stronger domestic participation.”

During 2022–2023, the total DVA (direct + indirect) rose to 23%, or over $10 billion.

With $20.5 billion in mobile phone exports (CY2024), the nation is currently the third-largest exporter in the globe. The results demonstrated that Indian success is driven by government support since 2017 and strategic integration into global value chains (GVCs) following the introduction of the Production Linked Incentive (PLI) program.

In 2022–2023, the mobile phone manufacturing sector will employ 17 lakh people. According to the survey, jobs associated with mobile phone exports increased by more than 33 times.

India’s performance is similar to that of other Asian countries in that it prioritizes scale and gradually increases value addition. Over the next ten years, the government’s continued assistance in this area would be crucial, according to Professor C. Veeramani, the director of CDS and the chair of the RBI.

“India can replicate similar strategies across the electronics sector to position the country as a global manufacturing leader, with mobile phone manufacturing providing a blueprint for growth,” he continued.

“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,” stated Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), in response to the study’s findings.

“The data unequivocally supports our assertion that India has benefited greatly from its involvement in backward-linked GVCs,” he continued.