India become the World’s 2nd largest mobile manufacturer

India’s manufacturing landscape has undergone a remarkable transformation in recent years, largely driven by the Prime Minister’s ‘Make In India’ initiative. Launched with the vision of making India a global manufacturing hub, this program has significantly boosted domestic production, fostered self-reliance, and created millions of jobs. The Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, recently shared insights into the progress made in the mobile and electronics manufacturing sectors, highlighting the impressive growth and future potential of these industries.
From Import to Independence: India’s Rise in Mobile Manufacturing
India has emerged as the world’s second-largest mobile manufacturing country, a feat that underscores its rapid industrial growth. In 2014, the nation had a mere two mobile manufacturing units. Today, that number has skyrocketed to over 300. This dramatic increase illustrates the sector’s expansion and the effectiveness of the ‘Make In India’ initiative.
In the fiscal year 2014-15, only 26% of mobile phones sold in India were manufactured domestically. The rest were imported. Fast forward to today, and an astonishing 99.2% of mobile phones sold in India are now made within the country. This shift not only reflects a growing self-reliance but also a significant increase in the manufacturing value of mobile phones, which has surged from โน18,900 crore in FY14 to an impressive โน4,22,000 crore in FY24.
Moreover, India is now producing between 325 to 330 million mobile phones annually. With about a billion mobile phones currently in use across the country, the domestic market is nearly saturated. This has led to a substantial increase in exports, which have risen from negligible levels in 2014 to over โน1,29,000 crore today. This remarkable growth trajectory highlights India’s potential as a key player in the global mobile manufacturing landscape.
A Decade of Job Creation in Electronics Manufacturing
The expansion of the mobile manufacturing sector has also had a profound impact on employment in India. Over the past decade, approximately 12 lakh direct and indirect jobs have been created in the electronics manufacturing industry. This surge in job opportunities has not only improved the economic status of many families but has also contributed to the overall socio-economic development of the country.
The ‘Make In India’ initiative has played a crucial role in this job creation. It has facilitated the domestic production of essential components and sub-assemblies, including chargers, battery packs, and more complex components like lithium-ion cells and display assemblies. As the sector continues to grow, the focus will shift towards enhancing the production of components and semiconductors, further solidifying India’s position in the global electronics market.
The government’s commitment to fostering a robust manufacturing ecosystem is evident in its policies and initiatives aimed at attracting investments and encouraging innovation. By prioritizing job creation and skill development, India is not only addressing unemployment but also building a workforce that is equipped to meet the demands of a rapidly evolving industry.
Deepening the Value Chain: Advancing India’s Electronics Manufacturing
As India continues to strengthen its manufacturing capabilities, the focus is now on advancing deeper into the value chain. This involves increasing the production of fine components and semiconductors, which are critical for the electronics ecosystem. Minister Ashwini Vaishnaw emphasized the importance of indigenous development in this area, as it will enhance India’s competitiveness in the global market.
Historically, restrictive policies between 1950 and 1990 hindered manufacturing growth in India. However, the ‘Make In India’ initiative is reversing this trend by promoting local production of components and chips. The establishment of a semiconductor manufacturing base is a key component of this strategy. The India Semiconductor Mission, along with several approved projects, aims to create a sustainable semiconductor ecosystem in the country.
With major projects underway, including those by Micron and Tata Electronics, India is on the path to establishing a solid foundation for semiconductor manufacturing. This development is crucial for reducing dependency on imports and ensuring that India can meet its growing demand for electronic components.
Make In India: Shaping the New Economic Era
The ‘Make In India’ initiative is not just about mobile phones; it encompasses a wide range of products, from toys to defense equipment and electric vehicle motors. The vision of Prime Minister Narendra Modi is to position India as a global manufacturing hub. This initiative is driving self-reliance, boosting production, and creating jobs, which are vital for the nation’s economic resilience.
As production shifts back to India, the country is poised to become a significant player in various sectors. The focus on local manufacturing aligns with global trends towards sustainability and self-sufficiency. By investing in infrastructure, technology, and skill development, India is laying the groundwork for a prosperous economic future.
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