According to the study, domestic value addition in smartphone manufacturing reached 23% in 2022–23, amounting to over $10 billion. This marks a substantial improvement from previous estimates, which pegged local value addition at below 20%, reinforcing the perception that India’s role was limited to basic assembly operations.
The CDS study also reports that the sector supported over 17 lakh direct and indirect jobs in FY23, indicating a sharp rise in employment driven by growing production volumes and exports. In fact, jobs linked specifically to mobile exports grew 33 times during the period under review.
Exports have seen a meteoric rise—from $0.2 billion in 2017–18 to a projected $24.1 billion in 2024–25—showcasing India’s increasing competitiveness in the global electronics value chain.
Despite the progress, the CDS study urges caution and refinement in policy. It recommends lowering tariffs on imported components and avoiding mandates for localisation, arguing that such measures could slow down growth or deter foreign investment.
The report also advocates for the continuation of incentives for the semiconductor sector, which it sees as critical to sustaining momentum in electronics manufacturing.
