In Short:
India has become the world’s second-largest mobile phone manufacturer, producing phones worth Rs 4.1 lakh crore annually, according to S Krishnan from the Ministry of Electronics and IT. The government aims to support companies through the Production-Linked Incentive (PLI) scheme, which offers 4%-6% incentives on increased sales. This scheme, initiated in April 2020, is expected to generate a production value of Rs 4.39 lakh crore by March 2024. It has attracted global companies and boosted local manufacturing, reducing import reliance and creating many jobs, as highlighted by T.V. Ramachandran from the Broadband India Forum.
India’s Mobile Manufacturing Revolution
India Shines as the Second-Largest Mobile Manufacturer
In a groundbreaking announcement, S Krishnan, the esteemed Secretary of the Ministry of Electronics and IT (MeitY), revealed that India has proudly claimed the title of the world’s second-largest mobile manufacturer. With an impressive annual production value hitting a staggering Rs 4.1 lakh crore, the nation is truly making its mark in the global mobile landscape.
Government Commitment to Growth
During an industry conference hosted by the Broadband India Forum (BIF), Krishnan emphasized the government’s unwavering commitment to ensuring that beneficiaries of the Production-Linked Incentive (PLI) scheme reap maximum rewards. “Our priority remains to help them not only meet their targets but also enrich the overall business environment in India,” he stated.
A Collaborative Effort
The BIF conference saw participation from top-tier tech giants including Meta, Google, Amazon, TCS, Samsung, and Qualcomm, showcasing the collaborative efforts that have spurred this manufacturing boom.
The Role of the PLI Scheme
Initiated on April 1, 2020, the PLI scheme for large-scale electronics manufacturing provides lucrative incentives ranging from 4% to 6% on incremental sales over the base year. The Indian cabinet had set ambitious production value targets, estimating a whopping Rs 8.12 lakh crore over five years under this scheme, with a specific goal of Rs 4.39 lakh crore by March 2024.
Exceeding Expectations
Recent reports reveal that the production value of companies qualifying for the handset PLI scheme has not only met but exceeded expectations, achieving a remarkable Rs 4.8 lakh crore as of March 2024.
Impact on Jobs and Manufacturing
T.V. Ramachandran, President of BIF, shared insights on the broader impacts of these strategic policies. “The government’s proactive measures and production-linked incentives have attracted major global players while also galvanizing domestic manufacturers. This surge in mobile phone production is gradually reducing our dependence on imports and generating thousands of jobs within the manufacturing sector,” he explained enthusiastically.
