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Over the last ten years, mobile phone manufacturing in India has skyrocketed by 21 times, reaching ₹4.1 lakh crore, thanks to government initiatives like the Production Linked Incentive (PLI) scheme.

This surge has enabled India to meet 97% of its mobile phone demand domestically, with 30% of the production aimed for export in the fiscal year 2024, totaling around Rs 1.2 lakh crore. Mobile phones have now become India's 5th largest export commodity.

The PLI scheme, particularly for Electronics Manufacturing and IT hardware, has been pivotal in positioning India as a competitive hub for electronics manufacturing. Key global contract manufacturers have started establishing manufacturing facilities in India.

To address the increasing manufacturing capacity and demand as an effective workforce development strategy, mobile phone manufacturers are actively involving apprentices. Recent figures indicate that approximately 55,000 trainees were hired in 2024 alone.

Sumit Kumar, our Chief Strategy Officer, mentioned in an interview with The Economic Times that these trainees were recruited from various apprenticeship programs offered by The Electronic Sector Skill Council of India.

Impact of the PLI Scheme in Mobile Phone Manufacturing

• The PLI scheme has led to a nearly 100% surge in mobile phone exports in FY23 compared to FY22, showcasing a robust export market for domestically manufactured phones

• The initiative created 5 lakh incremental jobs

• Attrition rates have dropped by 5%-7% in Q4 2023, and the workforce has expanded by 20% year-on-year in the March quarter

To address vacancies, companies are also leveraging skill development programs like apprenticeships and degree apprenticeships.

Sumit further emphasized that Degree Apprenticeships are anticipated to become a vital pathway for women apprentices to engage with the company, offering them financial independence and valuable work experience. Since Apple began ramping up exports from India in July 2023, there has been a notable 5-6 times increase in the female workforce, as highlighted by Sumit.

You can read more about this in the article in The Economic Times

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