India’s Mobile Phone Exports Surge 127 Times in a Decade

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Under the aegis of National Policy on Electronics (NPE) 2019, MeitY has notified Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing (LSEM) and Production Linked Incentive (PLI) Scheme for IT Hardware.

Government has taken various initiatives including PLI Schemes, in last ten years which resulted in establishment of a strong electronics manufacturing ecosystem in India.

Government initiatives that made such transformation include:

• Production linked incentives (PLI) for large scale electronics manufacturing
• Production linked incentives (PLI) for IT hardware
• Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
  - Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme
• Public Procurement (Preference to Make in India) Order 2017 to prioritize domestically manufactured products in public procurement
• Reforms in taxation including rationalization of tariff structure, exemption on basic custom duty on capital goods, etc.
• Allowing 100% FDI in electronics manufacturing, subject to applicable laws / regulations Industry estimates that the value addition for electronics manufacturing in India has reached 18- 20% across various items.

PLI Scheme for Large Scale Electronics Manufacturing has significantly impacted Mobile manufacturing sector in India particularly in transforming India from a net importer to a net exporter of mobile phones. Bharat is now the second largest mobile manufacturing country in the world. Growth of electronics goods production and exports are hereunder :

The PLI Scheme for LSEM has already attracted a cumulative investment of INR 12,390 Cr, led to a cumulative production of INR 8,44,752 Cr with exports of INR 4,65,809 Cr and generated additional employment of 1,30,330 (Direct jobs) till Jun’25.

The PLI Scheme 2.0 for IT Hardware have attracted a cumulative investment of INR 717.13 Cr, led to a cumulative production of INR 12,195.84 Cr and generated additional employment of 5,056 (direct jobs) till Jun’25.

Total FDI in field of electronics manufacturing in last 5 years (i.e. since FY 2020-21) is USD 4,071 Mn, cumulative FDI of USD 2,802 Mn has been contributed by MeitY PLI beneficiaries.