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The Economic Survey 2025, tabled by Finance Minister Nirmala Sitharaman ahead of the Union Budget 2025, revealed that 99 per cent of smartphone components were manufactured domestically, which the government said reduced India’s dependence on imports. In the financial year 2024, smartphone production facilities — spread across northern and southern regions — manufactured roughly 33 crore mobile phone units, of which 75 per cent come with 5G connectivity.
The domestic production of electronic goods, including smartphone components, surged “substantially” from ₹1.90 lakh crore in FY15 to ₹9.52 lakh crore in FY24, the Economic Survey 2025 highlighted, citing data from Industry Associations & Directorate General of Commercial Intelligence and Statistics (DGCI&S). The surge in domestic production of electronic goods represents a compounded annual growth rate (CAGR) of 17.5 per cent, while the import rate reduced significantly from 78 per cent in FY15 to 4 per cent in the last financial year.
Mobile phone exports from India rose from zero per cent in FY16 to a volume worth ₹88,726 crore in FY23. “The key drivers of growth have been the large domestic market, the availability of skilled talent, and low-cost labour,” said the Economic Survey. On the other hand, mobile phone imports shrank to 0.8 per cent in terms of volume in the same financial year.
“The key drivers of growth have been the large domestic market, the availability of skilled talent, and low-cost labour,” said the Economic Survey, adding that programmes such as Digital India and Make in India boosted domestic manufacturing and helped fetch foreign investments. However, total India-manufactured goods accounted for a mere 4 per cent of the global market because the local industry has “largely focused on assembly, with limited progress in design and component manufacturing.” The government’s production-linked incentive (PLI) scheme, the Economic Survey underscored, has scaled up assembly processes so far “to encourage the existing domestic manufacturing ecosystem.”
