Minister Jitin Prasada Reports 99.2% of Mobile Handsets in India Are Domestically Manufactured

India has achieved a significant milestone in mobile handset manufacturing, with nearly 99% of devices used in the country being produced domestically. Minister of State for Electronics and Information Technology, Jitin Prasada, shared this information with Parliament. The domestic electronics sector has seen substantial growth over the past decade.

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The production value of electronics in India increased from Rs 1,90,366 crore in FY2014-15 to Rs 9,52,000 crore in FY2023-24. This represents a compound annual growth rate (CAGR) exceeding 17%. The country has transitioned from being a major importer to an exporter of mobile phones.

Mobile Manufacturing and Export Growth

In FY2014-15, about 74% of mobile phones sold in India were imported. Now, India manufactures 99.2% of its mobile handsets domestically. This shift highlights India's growing capabilities in electronics manufacturing and its emergence as a mobile exporting nation.

Prasada noted that the electronics sector has created approximately 25 lakh jobs, both directly and indirectly. This growth is attributed to various government initiatives aimed at boosting the industry.

Government Initiatives Boosting Electronics Sector

The government has launched the Semicon India programme with an investment of Rs 76,000 crore. This initiative aims to develop the semiconductor and display manufacturing ecosystem within the country. Additionally, other schemes are in place to support large-scale electronics and IT hardware manufacturing.

The Production Linked Incentive (PLI) Scheme and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) are among these efforts. These initiatives aim to enhance India's competitiveness in the global electronics market.

Challenges in Electronics Manufacturing

Despite these advancements, India's electronics manufacturing faces challenges compared to other nations. Factors such as higher capital expenditure requirements, longer gestation periods, and production scale impact competitiveness. Quality and pricing competition with global players also pose challenges.

Prasada highlighted these issues while discussing India's progress in electronics manufacturing. Addressing these challenges is crucial for sustaining growth and enhancing India's position in the global market.

The government's focus on developing a robust semiconductor ecosystem is expected to further strengthen India's electronics industry. Continued efforts to address cost disabilities will be essential for maintaining momentum in this sector.