India’s telecom revolution has transformed the humble mobile phone into a powerful driver of economic growth and social inclusion. From banking and education to entertainment and e-governance, mobiles have become an indispensable part of everyday life. According to the Comprehensive Modular Survey: Telecom (January-March 2025), nearly 96.8% of rural residents aged 15-29 used mobile phones during this period, compared to 97.6% in urban areas, underscoring near-universal penetration. With 85.5% of Indian households now owning at least one smartphone, the device has become the nation’s bank, classroom, and television, especially in rural regions where farmers are increasingly using digital tools such as the Digital Crop Survey, mKisan Portal, and National Pest Surveillance System app to access vital market prices, weather alerts, and pest advisories.
Over the past decade, India’s mobile industry has undergone a dramatic transformation. Once heavily dependent on imports, the country is now the world’s second-largest mobile phone manufacturer. In 2014, India had only two mobile manufacturing units, but today it boasts over 300 facilities producing more than 330 million handsets annually, with nearly a billion mobile phones currently in use across the country. The sector has generated over 12 lakh jobs in the past decade, strengthening India’s socio-economic fabric.
This growth is closely tied to India’s rise as a global digital economy powerhouse. The country is now the third most digitalised economy worldwide and is expected to see its digital economy grow nearly twice as fast as overall GDP, contributing almost one-fifth of national income by 2029-30 and surpassing agriculture and manufacturing. The electronics sector, led by mobile manufacturing, has been a key enabler of this growth, with total electronics production rising from ₹1.9 lakh crore in 2014-15 to ₹11.3 lakh crore in 2024-25.
Mobile production alone has seen a 28-fold surge in the past decade, jumping from ₹18,000 crore in 2014-15 to ₹5.45 lakh crore in 2024-25. The government’s ‘Make in India’ initiative, coupled with the Production Linked Incentive (PLI) Scheme and a series of policy measures, has driven this exponential growth. India is steadily moving into deep component manufacturing, marking a new phase of value addition and self-reliance in the sector.
The results are particularly striking on the export front. Smartphones have emerged as the fourth-largest export item from India, with mobile exports surging from ₹1,500 crore in FY 2014-15 to a record ₹2,00,000 crore in FY 2024-25 – a 127-fold increase. India recently overtook China in smartphone exports to the US, underscoring its growing dominance in global supply chains. Apple alone exported ₹1.1 lakh crore worth of iPhones from India in 2024, registering 42% year-on-year growth, while Samsung’s Noida facility pushed India’s mobile phone exports to US$20.4 billion in the same year.
This success has been built on a strong policy foundation. Initiatives such as Make in India, Digital India, the National Policy on Electronics (2019), and the SPECS and ECMS schemes have together created an enabling ecosystem for electronics manufacturing. The PLI Scheme, in particular, has incentivised global smartphone giants to shift production to India, while the recently approved Electronics Components Manufacturing Scheme (ECMS) is expected to attract investments of over ₹59,000 crore and create nearly 1 lakh direct jobs in the next six years.
India’s rise as a global mobile manufacturing hub is also benefiting from shifting global supply chains, with multinational corporations diversifying production away from China. The so-called China+1 strategy is driving more firms to set up operations in India, helping the country capture a growing share of global electronics exports.
Looking ahead, India’s digital economy is projected to expand rapidly, contributing almost 20% of national income by 2029-30. The government has set a target of achieving USD 300 billion worth of electronics production by 2026 and expects India to account for 4-5% of global electronics exports by 2030.
Prime Minister Narendra Modi recently summed up the country’s achievements, saying, “We’re rapidly moving towards being No. 1 in mobile phones manufacturing.” With a young population, rising incomes, and continued policy support, India is well on track to becoming a global leader in mobile production and exports – a development that could redefine its position in the world economy.
