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

In a significant boost to India's electronics manufacturing sector, the India Cellular and Electronics Association (ICEA) projects that the total production of electronic goods in the fiscal year 2023-24 is set to reach an impressive $115 billion. This surge is primarily attributed to the remarkable performance of mobile phone local production, expected to surpass $50 billion in the current fiscal year.

Key Highlights:

Milestone in Electronics Manufacturing:The country has achieved a remarkable milestone, crossing $100 billion in electronics manufacturing during the current financial year.
Mobile phone manufacturing has played a pivotal role, contributing a substantial $44 billion to the overall figure.


Local Production Success:The mobile phone industry's emphasis on deep manufacturing and increased localisation has led to near self-reliance in critical components such as PCBAs, chargers, battery packs, and cables.
The focus on localisation extends to other value chain items, including mechanics, die-cut parts, camera modules, and display assemblies.


Export Potential:With an eye on the global market, the mobile phone manufacturing sector is poised to become a significant player in exports, contributing more than $50 billion alone by 2025-26.
The government has set an ambitious target of achieving $300 billion in electronics manufacturing by 2025-26, with a substantial $100 billion expected from exports.


Call for Diversification:Pankaj Mohindroo, Chairman of ICEA, emphasizes the need to replicate the success of the mobile phone manufacturing sector in other verticals of the Indian electronics system design and manufacturing (ESDM) industry.
Sectors such as IT hardware, wearables, and hearables, along with electronic components, are encouraged to follow the trajectory set by mobile phones.


Government Initiatives:The government's proactive measures, including the Production-Linked Incentive (PLI) 2.0 for IT Hardware with a capital outlay of Rs 17,000 crore, signal a promising future.
The clear focus on value chain development is expected to yield impressive outcomes, fostering growth in various segments of the electronics industry.

Conclusion:

India's electronics manufacturing sector is experiencing unprecedented growth, with mobile phones leading the way. The industry's success underscores the potential for India to become a global hub for electronics manufacturing. As the government continues to support initiatives like PLI 2.0, the trajectory looks promising, signaling a robust and diversified future for the country's electronics ecosystem.