99% Of Mobile Handsets In India Are Domestically Manufactured: Government

Minister of State for Electronics and IT, Jitin Prasada, informed Parliament on Wednesday that 99.2% of mobile handsets used in India are now domestically manufactured. This marks a significant shift from 2014-15 when 74% of mobile phones sold in India were imported.

The domestic electronics production has seen remarkable growth, increasing from ₹1,90,366 crore in FY 2014-15 to ₹9,52,000 crore in FY 2023-24. Prasada said that this represents a compound annual growth rate (CAGR) of over 17%.

Key Initiatives Driving Electronics Manufacturing

Prasada highlighted that industry estimates suggest the electronics sector has generated approximately 25 lakh jobs, both direct and indirect. The government has launched initiatives like the ₹76,000 crore Semicon India programme to boost semiconductor and display manufacturing.

Additionally, the Production Linked Incentive (PLI) Scheme and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) are incentivizing large-scale electronics and IT hardware production.

Challenges in Competing Globally

Despite progress, Prasada acknowledged the challenges facing India’s electronics manufacturing. These include higher capital requirements, extended project gestation periods, and the need to compete globally on quality and price. Factors like technology transfer and achieving economies of scale also contribute to cost disadvantages, he noted.

India has transitioned from being a mobile phone importer to an exporter, underscoring the success of initiatives aimed at fostering electronics manufacturing growth.

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