India has changed dramatically in less than ten years, going from being a mobile phone market that depended heavily on imports to becoming the third-largest exporter in the world. A recent report by the Centre for Development Studies (CDS) found that mobile phone exports reached Rs. 1,77,141 crore (US$ 20.5 billion) in CY24, propelled by significant policy changes and increased integration into global value chains (GVCs). The change started about 2017 and accelerated in 2020 when the Production Linked Incentive (PLI) program was introduced, which promoted the production of electronics on a massive scale. Because of this, exports have surpassed domestic consumption, which is uncommon in developing countries. Mobile exports increased by an astounding 11,950% from barely Rs. 1,728 crore (US$ 200 million) in 2017–18 to Rs. 2,08,248 crore (US$ 24.1 billion) in 2024–25. Since 2018–19, the industry has also continuously shown a positive net export trend, pointing to long-term structural advancements.
According to the research, Domestic Value Addition (DVA) increased significantly, surpassing Rs. 86,410 crore (US$ 10 billion) in 2022–2023 and reaching 23% of output value. Between 2019–20 and 2022–23, direct DVA increased by 283% to Rs. 39,749 crore (US$ 4.6 billion), while indirect DVA increased by more than six times to Rs. 28,515 crore (US$ 3.3 billion) through component suppliers and service providers. Over 17 lakh people now work in the sector, with employment tied to exports increasing by more than 33 times. Indicating inclusive development, wages in export-oriented positions have also increased. Prioritizing size above deep localization, resolving tariff inefficiencies, enhancing logistics, and maintaining an outward-oriented industrial policy are all suggested by the report. India has the potential to become a global center of production and duplicate this model in the larger electronics industry with the correct combination of policies and ongoing GVC integration.
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