Electronic goods production in India to hit $115 bn in FY24, mobile phones at $50 bn

The total production of electronic goods in India in FY23-24 is likely to reach $115 billion, buoyed by mobile phones’ local production which is estimated to exceed $50 billion in the current fiscal year, said the India Cellular and Electronics Association (ICEA) on Sunday.

To date, during this financial year, the country has crossed $100 billion of electronics manufacturing with a major contribution of $44 billion by mobile phone manufacturing.

With a strong focus on deep manufacturing and greater degree of localisation, the mobile phone industry has been able to achieve a state of near self-reliance in PCBAs, chargers, battery packs, cables etc.

The country is also moving towards the localisation of other value chain items and substantial investments have been made in the localisation of mechanics, die cut parts, camera modules, display assemblies etc.

“Our focus should be largely on manufacturing for the world and no economy or sector can become great without creating a giant export base for its nation,” said Pankaj Mohindroo, Chairman, ICEA.

“This is the high time that the outstanding performance of the mobile phone manufacturing sector should be replicated in other verticals of Indian electronics system design and manufacturing (ESDM) industry such as IT hardware, wearable and hearable, electronic components etc,” he added.

The government has set a target of achieving $300 billion worth of electronics manufacturing by 2025-26, with $100 billion expected to come from exports. Mobile phones alone are anticipated to contribute more than $50 billion worth of exports by 2025-26.

“The future is also promising. The PLI 2.0 for IT Hardware with a capital outlay of Rs 17,000 crore and with a clear focus on value chain development, will surely yield impressive outcomes,” said the ICEA.