India is significantly expanding its footprint in the global smartphone industry, shifting its focus from merely assembling devices to producing the intricate components and materials that go into them. This strategic move was highlighted by Union Electronics and IT Minister Ashwini Vaishnaw, emphasizing a deeper integration into the manufacturing value chain under the 'Make in India' initiative.
Beyond Assembly: A New Era of Component Production
Minister Vaishnaw stated that while India has established itself as the world's second-largest phone maker, with approximately 330 million units manufactured annually and 99.2% of phones sold domestically produced in FY2023-24, the next phase involves manufacturing what goes inside these devices. This includes critical components like batteries, displays, cameras, speakers, printed circuit boards (PCBs), coils, enclosures, and connectors.
Focus on Battery Ecosystem
A significant push is being made in battery manufacturing, particularly for lithium-ion cells. Vaishnaw specifically mentioned the domestic production of materials such as synthetic graphite, used in battery anodes, and acetylene black, which improves electrical conductivity. Special additives for liquid electrolytes, crucial for enhancing battery performance and longevity, are also slated for domestic manufacturing. The ATL battery-cell facility in Manesar, Haryana, with an investment of ₹3,000 crore, exemplifies this expansion.
Government Support and Future Outlook
The government's commitment to this advanced manufacturing is underscored by schemes like the ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS). Scheduled from FY2026-27 to FY2030-31, the MPMS offers manufacturing incentives ranging from 2.25% to 5%, with additional provisions for Indian brands, design, and research and development.
This evolving strategy signifies a mature stage for India's electronics manufacturing sector, aiming to build a robust domestic ecosystem for materials, components, and sub-assemblies, thereby reducing reliance on imports and strengthening the nation's position as a global manufacturing hub.