Union Minister Ashwini Vaishnaw on Sunday announced that India has emerged as the leading supplier of smartphones to the United States, with the country’s electronics manufacturing sector reaching a valuation of Rs 12 lakh crore.
The minister emphasised the rapid growth in the electronics sector, stating that production has increased sixfold over the past 11 years. He also highlighted the eightfold surge in electronics exports, which now stand at Rs 3 lakh crore.
The Railways, Information and Broadcasting Minister was speaking at the inauguration of Metro projects in Bengaluru.
“India is now the world’s second-largest mobile phone manufacturer,” Vaishnaw said, underlining the country’s growing presence in the global electronics landscape.
He said that this remarkable growth reflects our focus on transforming India into a global hub for technology production and aligns with the Prime Minister’s vision of inclusive access to technology.
According to official government data, India has made significant progress in mobile and electronics manufacturing, becoming the world’s 2nd largest mobile manufacturing country.
From just two mobile manufacturing units in 2014, the country now houses over 300 such facilities. This expansion has significantly reduced reliance on imports.
Back in 2014-15, only 26 per cent of mobile phones sold in India were locally made. Today, that number has soared to 99.2 per cent, signaling a near-complete shift to domestic production.
The manufacturing value of mobile phones has seen an exponential rise—from Rs 18,900 crore in FY14 to Rs 4,22,000 crore in FY24.
This comes in the backdrop of a major strain in India–US trade relations. U.S. President Donald Trump recently issued an executive order imposing an additional 25 per cent tariff on Indian goods, allegedly in retaliation for New Delhi’s continued purchase of Russian oil.
This new levy, when combined with an earlier 25 per cent tariff already in force, raises the total duty on Indian exports to a steep 50 per cent, placing India among the most heavily taxed US trading partners in Asia, alongside Brazil.
Despite this, Moscow has voiced solidarity with India over its right to maintain diversified energy imports, further reinforcing the strategic alignment between New Delhi and Moscow.
India has reportedly placed a hold on a 3.6 billion USD agreement to acquire Boeing aircraft from the United States, following a dramatic price escalation attributed to newly imposed tariffs.
The original contract, approved by the US State Department in 2021, involved the purchase of six additional Boeing P-8I maritime patrol aircraft.
However, the total projected cost has surged by nearly 50 per cent, reportedly due to supply chain disruptions, inflation, and the imposition of tariffs under the administration of former US President Donald Trump.
Defence sources cited in multiple reports indicate that the Indian Ministry of Defence has opted to pause the acquisition and conduct a strategic reassessment.