India Becomes the World’s Third-Largest Mobile Phone Exporter: A Story of Revolutionary Transformation

There was a time when India relied heavily on imports to meet its mobile phone needs. But today, the picture has completely changed. In 2024, India exported mobile phones worth $20.5 billion, making it the third-largest exporter in the world—a major national achievement.

This remarkable transformation is detailed in a new report by the Centre for Development Studies (CDS), led by Prof. C. Veeramani. The report highlights that this success is not only due to policy reforms but also the result of India’s active integration into the global supply chain.

From Import-Dependent to Export Leader

In 2014-15, India depended on imports to meet domestic demand for mobile phones. But by 2024-25, India had exported mobile phones worth $24.1 billion—a staggering 11,950% increase from just $0.2 billion in 2017-18.

The CDS report describes this as a “structural transformation”—indicating that India’s manufacturing capabilities are no longer confined to meeting internal demand but are now making a strong mark in the global market.

The report also notes that since 2018-19, India has consistently been a net exporter in the mobile phone sector. Much of this progress is attributed to the government’s Production-Linked Incentive (PLI) scheme, introduced in 2020.

Surge in Domestic Value Addition

One of the key drivers behind India’s export success is the sharp rise in Domestic Value Addition (DVA).

According to the report:

Total DVA (direct and indirect) stood at 23% of the total production value in 2022-23, worth over $10 billion.

Direct DVA, generated by mobile manufacturers themselves, increased from $1.2 billion between 2016-17 and 2018-19 to $4.6 billion between 2019-20 and 2022-23—a 283% rise.

Indirect DVA, including component manufacturing and service support, rose from $470 million to $3.3 billion—a 604% increase.

This data indicates that not only are mobile phones being assembled in India, but domestic companies and suppliers are also playing a growing role in the production process.

Boost in Employment and Wages

The mobile manufacturing boom has had a visible impact on India’s labor market.

According to the Annual Survey of Industries (ASI), by 2022-23, the mobile phone sector (direct and indirect) employed over 1.7 million people. Most strikingly, export-related employment increased 33-fold during this period.

The sector also offers competitive wages, particularly to those working in export-linked areas. This clearly shows that the rise in mobile exports has not only generated more jobs but has also led to wage improvements.

Policy Support and Industry Response

Reacting to the report, Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association (ICEA), said the study reinforces ICEA’s long-held view that India’s participation in the global value chain (GVC) is essential.

He stated, “This study proves that by participating in the backward-linked global value chain, India has secured major benefits—such as increased exports, enhanced domestic value addition, and job creation.”

In essence, India’s journey from being an importer to becoming a top exporter of mobile phones represents a landmark shift in policy, manufacturing, and strategic global integration.