India’s Mobile Manufacturing Boom Propels Electronics Exports, Challenging China’s Dominance
India’s mobile-led electronics manufacturing boom—fueled by PLI schemes—positions the country to rival China in global tech exports.
NewsSutra
India’s electronics export surge is gaining significant momentum, led by a steep rise in mobile phone production and backed robustly by the Production-Linked Incentive (PLI) schemes. With exports of smartphones and electronic components scaling new heights, the country is swiftly positioning itself as a viable alternative to China in the global electronics manufacturing ecosystem.
This transformation, once aspirational, is becoming tangible as Indian manufacturing plants, especially in states like Uttar Pradesh, Tamil Nadu, and Karnataka, are witnessing record-breaking output. According to data released by the Ministry of Commerce & Industry, India’s electronics exports grew by over 35% in the first half of FY 2025, largely due to mobile device shipments to Europe, Africa, and Southeast Asia.
A Nation on the Move: Mobile Manufacturing as the Core Engine
Mobile phones now constitute over 50% of India’s electronics exports, a milestone that reflects the success of flagship initiatives like Make in India and the PLI scheme for Large-Scale Electronics Manufacturing (LSEM). Major global players such as Apple, Samsung, Xiaomi, and Vivo have significantly expanded their production lines in India, both directly and via contract manufacturers like Foxconn, Wistron, and Pegatron.
India produced more than 400 million mobile phones in 2024, with over 35% destined for export markets, according to a recent report from the India Cellular and Electronics Association (ICEA).
Rajeev Chandrasekhar, Minister of State for Electronics and IT, stated during a recent industry meet:
“India is no longer just assembling phones. We are developing an ecosystem—from components to design and exports. The aim is to become a global hub, not just a low-cost location.”
PLI Scheme: The Catalyst Behind the Growth
The PLI Scheme, launched in 2020 and expanded in 2023, provides financial incentives of up to 6% on incremental sales of goods manufactured in India. It has catalyzed the entry and expansion of several electronics players.
Key highlights of the scheme’s impact:
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Over ₹55,000 crore of investments have been committed under the PLI for electronics.
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Nearly 100,000 new direct jobs and 250,000 indirect jobs have been created.
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Production under the scheme is estimated to surpass ₹10 lakh crore by FY 2026.
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Exports from PLI participants are projected to cross ₹2 lakh crore this fiscal.
The scheme’s transparent eligibility, ease of compliance, and performance-linked payout structure have made it one of the most attractive industrial policies in India’s recent history.
You can read more on the scheme's structure and updates on the official PLI Dashboard by the Ministry of Electronics and Information Technology (MeitY).
Beyond Assembly: Component Manufacturing Gains Ground
India’s previous dependence on imported components—especially from China and Taiwan—is gradually reducing as domestic component manufacturing picks up pace. Government initiatives are now focusing on:
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Semiconductor packaging and assembly (OSAT) facilities
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Printed Circuit Board Assembly (PCBA)
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Battery cells and chargers
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Camera modules and sensors
The recent inauguration of India’s first commercial semiconductor packaging plant in Gujarat marks a historic step toward full-stack electronics capability.
Additionally, the Design Linked Incentive (DLI) scheme is pushing for IP creation and domestic innovation in electronics design, encouraging startups and academic collaboration.
Infrastructure and Policy Support: A Winning Combination
Apart from the PLI scheme, the government’s investment in logistics infrastructure has enhanced the efficiency of electronics exports. Electronics Manufacturing Clusters (EMCs) have been developed in Noida, Sriperumbudur, and Bengaluru, offering plug-and-play infrastructure for manufacturers.
The rollout of PLI 2.0 focuses on promoting design-led manufacturing, attracting $25 billion in expected investment over the next five years.
Moreover, fast-track clearance for electronics manufacturing projects, GST simplification, and flexible labor regulations in industrial parks are reinforcing India’s manufacturing ecosystem.
The National Policy on Electronics 2019 (NPE 2019) also lays out a clear roadmap for India to achieve $300 billion in electronics manufacturing by 2026.
Export Markets: Where India is Gaining Traction
India’s mobile exports are seeing impressive traction in markets such as:
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Europe: Led by increased exports of premium smartphones from Apple and Samsung
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Middle East & Africa: Demand for mid-range and budget devices
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Southeast Asia: Rising brand acceptance of Indian-assembled Xiaomi and Vivo phones
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Latin America: A new frontier where Indian electronics have entered through strategic OEM partnerships
India’s growing role in smartphone contract manufacturing has also started reshaping global supply chains. Many global brands are now preferring Indian production for their non-China export supply.
China vs. India: Is the Global Shift Real?
While China remains the dominant force in electronics production, geopolitical tensions, rising labor costs, and supply chain disruptions due to COVID-19 have prompted global brands to diversify.
India is emerging as the top alternative, particularly in mobile phones and consumer electronics. While Vietnam and Indonesia are also contenders, India’s scale, workforce, domestic market, and policy incentives give it a distinct advantage.
However, experts caution that India must move beyond assembly into chip design, component manufacturing, and innovation to truly rival China. Infrastructure constraints, skill gaps, and regulatory compliance still pose hurdles.
Industry Voices: What Key Stakeholders Are Saying
Pankaj Mohindroo, Chairman of ICEA, recently commented:
“India’s mobile phone manufacturing journey is the most successful case of industrial policy execution in the last decade. If we continue this trajectory, electronics could become India’s largest export category by 2030.”
Nivruti Rai, MD & CEO of Invest India, added:
“India is no longer just a destination for investment. We are now co-creating global supply chains, anchored on trust, talent, and technology.”
The Road Ahead: Policy Continuity and Ecosystem Deepening
To sustain and scale up this momentum, India needs to:
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Expand PLI-like incentives to sub-sectors like LEDs, IoT devices, and wearables
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Invest in R&D centres and chip fabrication units (fabs)
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Upskill its electronics manufacturing workforce via Skill India partnerships
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Promote exports through bilateral and regional trade agreements
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Enhance ease of doing business, especially around customs, patent clearances, and state-level compliance
The government has already signaled that PLI 3.0 will target emerging tech areas like AI hardware, quantum devices, and AR/VR wearables.
Conclusion: A Resurgent Manufacturing Powerhouse
India’s electronics export story—led by mobile phone manufacturing—is not just a numbers game. It’s a clear demonstration of how well-calibrated industrial policy, global partnership, and entrepreneurial ecosystem can create new economic engines.
With continued focus, India could soon become a global electronics manufacturing powerhouse, challenging traditional supply chains and contributing meaningfully to global tech.
If the trend holds and policy momentum continues, India might very well overtake China as the preferred hub for high-value electronics exports in the coming decade.
