Economic Survey 2020: India toppled Vietnam to become the second largest manufacturer of mobile phones globally, following China in 2018 with a world share of 11%.

Economic Survey 2020: The survey highlighted the case of mobile phone assembly, which is another recent success story for India.

According to the survey, between 2013 and 2017, while India’s telecom handset imports declined from $4.47 billion to $3.31 billion, that of telecom parts increased steadily from $1.34 billion to $9.41 billion.

“At the same time, exports of telecom handsets increased significantly during the last three years. This pattern is consistent with the emergence of India as an assembly centre for telecom handsets,” the survey said.

India toppled Vietnam to become the second largest manufacturer of mobile phones globally, following China in 2018 with a world share of 11%.

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India could manufacture around 1.25 billion handsets across various segments by 2025, firing up an industry worth around $230 billion (ICEA-McKinsey report, 2018).

The survey noted that by importing components and assembling them in China for the world, China created jobs at an unprecedented scale. Similarly, by integrating “Assemble in India for the world” into Make in India, India can raise its export market share to about 3.5% by 2025 and 6% by 2030, which is highly feasible. In the process, the survey said India would create about 4 crore well-paid jobs by 2025 and about 8 crore by 2030.

The incremental value added in the economy from the target level of exports of network products, which is expected to equal $248 billion in 2025, would make up about one-quarter of the increase required for making India a $5-trillion economy by 2025, the survey added.