Transforming India’s Manufacturing Landscape: The Power of ‘Make in India’

India manufactures more than 325 million mobile phones annually, and with nearly a billion mobile phones in use across the country, the domestic market has been nearly saturated.

Prime Minister Narendra Modi's 'Make in India' initiative has played a crucial role in transforming India into a global manufacturing hub. Within just a decade of its launch, the program has propelled the nation toward greater self-reliance, enhanced production capacity, and created millions of jobs. The Union Minister for Electronics and Information Technology, Railways, and Information & Broadcasting, Shri Ashwini Vaishnaw, recently shared significant insights about the incredible transformation of India's mobile and electronics manufacturing sector, a key part of this journey.

India's Progress in Electronics and Mobile Manufacturing

India has made remarkable strides in mobile and electronics manufacturing, becoming the second-largest mobile manufacturing country in the world. In 2014, India had a mere two mobile manufacturing units. Today, the number has surged to over 300, reflecting the sector's tremendous growth.

A decade ago, India produced only 26% of the mobile phones sold in the country, with the rest imported. Today, 99.2% of mobile phones sold in India are locally manufactured, underscoring the country's progress in self-sufficiency. The value of mobile phone manufacturing has experienced exponential growth, rising from ₹18,900 crore in FY14 to an impressive ₹4,22,000 crore in FY24.

India manufactures more than 325 million mobile phones annually, and with nearly a billion mobile phones in use across the country, the domestic market has been nearly saturated. This growth is also accompanied by a significant increase in mobile phone exports, which, after being almost non-existent in 2014, have now crossed ₹1,29,000 crore.

Driving Employment Growth Through Electronics Manufacturing

The rapid expansion of India's mobile and electronics manufacturing sector has generated approximately 12 lakh direct and indirect jobs over the past decade. These job opportunities have not only contributed to the socio-economic development of countless families but also strengthened the nation's economic foundation.

The 'Make in India' initiative has been crucial in facilitating the domestic production of essential components and sub-assemblies, such as chargers, battery packs, USB cables, and more complex parts like Lithium Ion Cells, display assemblies, speakers, microphones, and camera modules.

Looking ahead, the focus is on advancing deeper into the electronics value chain, especially in the production of high-end components and semiconductors. This will further solidify India's position as a global leader in the electronics manufacturing industry.

Advancing India's Position in the Global Electronics Market

Shri Ashwini Vaishnaw highlighted the increasing focus on enhancing India's capabilities in producing sophisticated components and semiconductors, marking a critical step towards making India self-reliant in the electronics sector. This shift in focus, which aims to establish a robust domestic ecosystem for electronic components, will ensure that India plays a pivotal role in the global electronics market.

Between 1950 and 1990, India's manufacturing sector was hindered by restrictive policies, stalling progress. However, 'Make in India' has turned this trend around by delving deeper into the value chain, particularly with the growth of component and semiconductor production.

A significant milestone in India's semiconductor ambitions is the establishment of a manufacturing base for semiconductors. After over six decades of attempts, India is now seeing success through the launch of the India Semiconductor Mission and the approval of five major projects, including those by Micron, Tata Electronics, CG Power, and Keynes. These projects are helping to create a real semiconductor manufacturing base in India.

'Make in India' Shaping the Future of India's Economy

From mobile phones to defence equipment, electric vehicle motors to toys, the shift of production back to India is a testament to the success of the 'Make in India' initiative. Prime Minister Narendra Modi's vision of positioning India as a global manufacturing powerhouse is steadily becoming a reality. The 'Make in India' program is not only fostering self-reliance, boosting production, and creating jobs but also making a significant contribution to India's economic resilience.

As India continues to expand its manufacturing capabilities, the future holds immense promise, with the nation poised to play a leading role in the global economy.