India is all set to emerge as a key player in global electronics manufacturing, driven by strategic integration into global value chains (GVCs) and a sharp shift towards export-oriented policies. A report by the Centre for Development Studies (CDS) has highlighted that India, through “backwards-linked” GVC participation, has the potential to rival established players like China and Vietnam in the electronics manufacturing space.According to the CDS study, the Production Linked Incentive (PLI) Scheme launched in 2020 played a pivotal role in India’s transformation from an import-heavy mobile phone market to a major production and export hub. Mobile phone exports, which stood at just $0.2 billion in 2017-18, skyrocketed to $24.1 billion in 2024-25, marking a staggering 11,950 per cent growth.The report also pointed to a significant rise in Domestic Value Addition (DVA) within mobile manufacturing. Total DVA touched 23 per cent in 2022-23, with over $10 billion generated domestically. Direct DVA rose from $1.2 billion to $4.6 billion, a 283 per cent jump, while indirect DVA, from domestic suppliers, grew 604 per cent to $3.3 billion.Job creation has expanded alongside this growth. Citing Annual Survey of Industries (ASI) data, the report said the mobile phone sector supported over 17 lakh jobs in 2022-23. Export-linked employment, in particular, rose more than 33 times, with notable improvements in wages.“With the mobile phone manufacturing providing a blueprint for growth, India can replicate similar strategies across the electronics sector to position the country as a global manufacturing leader,” said CDS Director C Veeramani, as quoted by news agency ANI. He added that the broader electronics sector offers “enormous opportunities” waiting to be tapped.Pankaj Mohindroo, chairman of the India Cellular & Electronics Association (ICEA), echoed the findings, stating, “This study reaffirms what ICEA has consistently advocated — that strategic integration into global value chains is critical for scaling exports, enhancing domestic value addition, and creating jobs.”The report recommended that policymakers continue to focus on an outward-oriented strategy, suggesting liberalised trade policies, correction of tariffs, and ecosystem development including investment in logistics. It also urged the government to prioritise scale before enforcing early-stage localisation to ensure competitiveness.India’s electronics exports rose 47 per cent to $12.41 billion during the April-June quarter of FY26, as per commerce ministry data. The US, UAE, and China were the top destinations, with the US accounting for over 60 per cent of shipments.Officials noted that this growing geographical spread reflects India’s increasing integration into global supply chains and its rise as a credible manufacturing alternative in Asia.The CDS study underlines this momentum, calling for continued reforms to cement India’s role as a central node in global electronics manufacturing and to unlock growth across other sectors.
