From Assembly Lines to Silicon Dreams: India Becomes the World’s Second-Largest Mobile Maker

A decade-long push to localise electronics manufacturing has transformed India from a nation of importers into a global export powerhouse, with a new focus on the semiconductor ecosystem.

The scene at the newly inaugurated CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility was more than just a ribbon-cutting ceremony; it was a physical manifestation of a shift that began in 2014. As Prime Minister Narendra Modi was presented with the first batch of India-made chips destined for Japan, the narrative of the country's industrial journey shifted from mere mobile phone assembly to the complex, high-stakes world of semiconductor manufacturing.

The numbers provide a stark contrast to the landscape a decade ago. In 2014, only 26% of mobile phones sold within the country were locally made, and India relied heavily on foreign factories to fuel its digital appetite. Today, that figure has hit 99.2%. The value of production has surged six-fold, climbing from ₹1.9 lakh crore in 2014-15 to an impressive ₹11.3 lakh crore in the 2024-25 fiscal year.

Policy, PLI, and the Global Pivot

This transformation was not accidental. It was the result of a deliberate, policy-driven strategy, most notably the Production Linked Incentive (PLI) schemes. By incentivising global manufacturers to relocate their supply chains to Indian soil, the government turned the country into a viable alternative for companies navigating geopolitical tensions. The result is a 127-fold explosion in mobile phone exports over the last decade, with projections indicating these shipments could hit $35 billion by the end of the fiscal year.

With over 300 manufacturing units now operational—a massive jump from just two in 2014—the ecosystem has matured rapidly. The focus has now moved beyond just putting together handsets; it is about owning the value chain. By integrating chip packaging and testing, India is attempting to secure a seat at the table of global tech sovereignty.

Why It Matters: The Bigger Picture

This evolution represents a strategic hedge against global supply chain volatility. By building an "end-to-end" electronics value chain, India is reducing its vulnerability to the kind of import dependence that crippled its industrial potential in the past. The move into semiconductors is the logical, albeit difficult, next step. While assembly provides immediate job numbers—nearly 1.7 lakh additional jobs under the Large Scale Electronics Manufacturing scheme—the ability to package and eventually fabricate chips provides the long-term technological depth needed for a "Viksit Bharat."

The challenge moving forward lies in sustaining this momentum. As the world reconfigures its tech dependencies, India’s success will depend on how quickly it can scale its infrastructure and talent pool to match its policy ambitions. The "chip-by-chip" approach is a departure from the quick-fix industrial policies of the past, signalling a more patient, infrastructure-heavy roadmap for the nation’s electronics sector.