India’s mobile phone journey has seen a dramatic shift over the past decade. What was once a heavily import-dependent market is now the world’s second-largest mobile phone manufacturer. From just two manufacturing units in 2014 to over 300 today, India has rapidly scaled up local production, reduced imports, and emerged as a key exporter. The Make in India initiative has been at the heart of this transformation — attracting global giants, strengthening supply chains, and creating investment opportunities across the electronics ecosystem.
Let’s dive into how India made this leap and where investors should keep their eyes.
What’s Happening?
India has made remarkable progress in mobile and electronics manufacturing, becoming the world’s second-largest mobile phone producer. In 2014, the country had just two mobile manufacturing units. Today, that number has grown to over 300, reflecting a massive expansion in the sector.
In 2014-15, only 26% of mobile phones sold in India were manufactured domestically, with the rest being imported. Now, an impressive 99.20% of all mobile phones sold in the country are made in India.
India currently produces around 325 to 330 million mobile phones annually, while nearly a billion devices are in use nationwide.
The manufacturing value has also witnessed a substantial increase — from Rs 18,900 crore in FY14 to Rs 4,22,000 crore in FY24. The Make in India initiative has played a pivotal role in positioning India as a global manufacturing hub.
Export Surged by 77 Times
According to the Ministry of Electronics & IT, India’s electronics exports are growing rapidly, even outpacing traditional sectors. In 2014, electronics exports from India were almost negligible. Today, they have crossed Rs 1,29,000 crore.
Mobile phone exports alone have soared — rising 77 times from Rs 1,566 crore in 2014-15 to Rs 1.2 lakh crore in 2023-24.
PLI Scheme: Major Growth Driver
As reported by The Indian Express, the Production-Linked Incentive (PLI) scheme has significantly boosted smartphone production, with the government disbursing nearly $1 billion between 2022 and 2025. Notably, Apple’s contract manufacturers — Foxconn, Tata Electronics, and Pegatron — received over 75% of these funds.
In 2023-24, Foxconn received the highest subsidy of Rs 2,450 crore. However, in 2024-25, it received none. Instead, Samsung secured the highest subsidy of Rs 957.93 crore in that year.
Overall, five major companies — Foxconn, Tata Electronics, Pegatron, Samsung, and Padget Electronics — accounted for over 98% of the total incentives.
What’s in it for Investors?
India’s rapid growth in mobile and electronics manufacturing presents significant opportunities for investors. Indian firms engaged in contract manufacturing are likely to benefit the most. These include Tata Electronics, Dixon Technologies, Epack Durable, Amber Enterprises, Syrma SGS Technology, and Optiemus Infracom.
According to The Times of India, Chinese brands like Haier, Hisense, Oppo, OnePlus, and Vivo are ramping up local sourcing and manufacturing in India. This move is aimed at reducing dependency on Chinese imports and mitigating supply chain risks.
What’s Next?
US President Trump has paused additional tariffs for most countries — except China, where import duties have sharply risen from 34% to 125%. This makes Chinese goods considerably more expensive in the US, opening a strong opportunity for Indian exporters to fill the gap.
Meanwhile, amid the intensifying US-China trade war, Chinese electronic component manufacturers are offering up to 5% discounts to Indian companies. This development could help reduce production costs for Indian firms and ultimately bring down prices for consumers — a win-win for the Indian market.
According to the Ministry of Electronics & IT, India’s electronics production is expected to reach $300 billion by 2026. However, the scheduled end of the PLI scheme in 2026 — which currently offers a 4–6% manufacturing incentive — adds a layer of uncertainty. Without these incentives and with the possibility of tariffs, India’s standing as a leading smartphone manufacturing hub could face challenges.
*The companies mentioned in the article are for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
