Sri Lanka’s Purchasing Managers’ Index (PMI) for June 2025 shows continued growth in both the manufacturing and services sectors.

The Manufacturing PMI stood at 51.9, indicating moderate expansion despite a drop in employment. New orders and production increased, though firms remained cautious due to global trade uncertainties.

Meanwhile, the Services PMI rose sharply to 61.9, driven by strong activity in the financial, insurance, and transportation sectors. Employment and new business also improved.

Outlook remains positive, though concerns persist over global trade tensions and new taxes on digital services. (Newswire)

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The Board of Investment of Sri Lanka (BOI) has denied imposing any export restrictions on a Singapore‐based manufacturing company, responding to public allegations that its operations in Sri Lanka were obstructed.

Issuing a statement, BOI officials clarified that no formal export bans or restrictions have been placed on the firm Honour Global Singapore.

The company in question, which was approved in December 2023 to produce and export certain products, remains fully authorized to continue its export activities, the BOI said.

However, the BOI emphasized that Sri Lanka, as a member of the World Trade Organization (WTO), adheres to the global rules‑based trading system. Under WTO obligations, member countries may investigate and apply trade remedies, such as anti‑dumping or countervailing duties, if domestic industries are threatened by unfairly subsidized or under‑priced imports.

BOI confirmed that discussions with the company, the Department of Commerce, and the Ministry of Trade, Commerce and Food Security centered on ensuring compliance with these WTO‑mandated trade safeguards, not on imposing restrictions.

The BOI’s clarification comes after the Singaporean company that had invested in a foam mattress manufacturing plant in Sri Lanka said it is considering shutting down operations, accusing the BOI of obstructing its operations.

Addressing the media, representatives of Honour Global Industries said permission was sought for the factory to annually manufacture around 2.5 million foam mattresses in Sri Lanka and export to various other countries, but some time after receiving the necessary approval in March 2024, the BOI had informed in writing that exports to the USA will be restricted to 50,000 mattresses per year. 

“We cannot operate a factory for such a small number of mattresses. Both the BOI and the Monetary Board have been dragging this matter for the last six months. Almost 500 employees face losing their jobs due to this situation,” they added. (Newswire)

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In the past decade, India has rapidly emerged as one of the world’s largest and most dynamic hubs for mobile manufacturing. Once a consumer-dependent market, the Indian mobile industry has undergone a transformation, now playing a critical role in the global supply chains. This remarkable shift has been driven by government initiatives, foreign investments, and a growing domestic market, positioning India as a powerhouse in mobile manufacturing.

Domestic demand fuel mobile manufacturing growth

India’s journey into mobile manufacturing started with the rapid rise in domestic demand for mobile phones. The early 2000s saw an internet revolution and a telecommunications boom, leading to an explosion in mobile phone usage. However, at that time, India relied heavily on imports, mainly from countries like China and South Korea, to meet its needs. This reliance on foreign imports spurred the Indian government to rethink its strategy and formulate policies aimed at transforming India into a self-sustaining manufacturing hub for electronics, including mobile phones.

The make in India initiative

The turning point for India’s mobile manufacturing came with the launch of the “Make in India” initiative in 2014, spearheaded by Prime Minister Narendra Modi. The initiative aimed to promote domestic manufacturing, create jobs, and increase exports, with a strong focus on electronics.

The Make in India initiative provided critical incentives such as tax exemptions, subsidies, and efforts to streamline bureaucratic processes, making India an attractive proposition for both domestic and international companies. As a result, mobile manufacturing in India expanded exponentially. In 2014, there were only two mobile manufacturing units in the country; today, that number has grown to over 300, marking a significant expansion in this vital sector.

Mobile manufacturing moves from imports to independence

India’s progress is evident in the dramatic shift from reliance on imports to local production. In 2014-15, just 26% of the mobile phones sold in India were made domestically, with the rest being imported. By 2024, that number had surged to an impressive 99.2%, with mobile phone manufacturing in India reaching a value of ₹4,22,000 crore (Approx USD 50 billion). Exports of mobile phones also grew exponentially, surpassing ₹1,29,000 crore (approx. USD 15 billion) in 2024.

Today, India manufactures around 325–330 million mobile phones annually, increased from 58 million in 2014-25 to 330 million in 2023-24, with over a billion mobile phones in use in the country. This shift in production capacity has positioned India as the world’s second-largest mobile manufacturer. The country has become a key player not only in satisfying domestic demand but also in tapping into global markets, particularly in regions such as the Middle East, Africa, and Europe.

Mobile manufacturing enhance skill development and employment opportunities

The rise of mobile manufacturing in India has had a profound impact on job creation. The mobile manufacturing boom has also led to substantial employment opportunities in India. More than 20 million people are directly or indirectly employed in mobile manufacturing-related activities, including assembly, logistics, and the supply chain. This surge in employment has contributed to the socio-economic upliftment of many communities across the country, particularly in rural and semi-urban areas. These job opportunities have not only contributed to economic growth but also transformed the Indian workforce.

To meet the demands of an evolving industry, there has been a significant emphasis on skill development. Partnerships between the government, industry leaders, and educational institutions have led to the creation of specialized training programs. These initiatives have improved the skillset of the workforce, making India a more attractive destination for global manufacturers seeking to set up operations.

The semiconductor push enhances value chain

As India continues to expand its mobile manufacturing capacity, the focus is shifting toward deeper integration into the value chain. The country is now working on the development of semiconductor chips and finer components, areas that have historically been dominated by China and Taiwan. This push is in line with India’s broader strategy of enhancing self-reliance and becoming a leader in the global electronics market.

The establishment of a domestic semiconductor manufacturing base has been a long-standing goal. In recent years, the Indian government has made strides toward this goal through the India Semiconductor Mission, which supports the creation of a local semiconductor industry.

The PLI push to mobile manufacturing

While the Make in India initiative laid the foundation, the government further accelerated India’s rise as a mobile manufacturing hub by introducing the Production-Linked Incentive (PLI) scheme in 2020. The PLI scheme offers financial incentives to manufacturers based on the volume of production achieved, thus incentivizing companies to ramp up domestic manufacturing.

The PLI scheme has been a game-changer for the mobile manufacturing sector. It has attracted numerous global companies to either set up new manufacturing units or expand existing ones in India. This, in turn, has bolstered India’s efforts to reduce dependence on imports, especially from China, its largest supplier of mobile phones.

India’s mobile manufacturing success is not limited to the domestic market. The country has increasingly become an exporter of mobile phones and components, and this trend is expected to grow. The PLI scheme has played a critical role in boosting India’s export potential by incentivizing manufacturers to ramp up production for international markets.

Strengthened supply chain reduce dependence on imports

The rapid growth of India’s mobile manufacturing has also been supported by the development of a robust local supply chain. Initially, the country’s mobile manufacturing industry was limited to phone assembly, with most components being imported. However, thanks to increased foreign direct investment (FDI) and government initiatives, many companies have set up local manufacturing plants for key components, including displays, batteries, and camera modules, significantly lowering production costs. This reduction in import dependency has made mobile phones more affordable for Indian consumers, further driving demand.

In conclusions, India’s leap into mobile manufacturing is a remarkable success story that has transformed the country from a net importer of mobile phones to one of the world’s largest mobile manufacturing hubs. With proactive government policies, substantial foreign investment, a growing supply chain, and a rising domestic demand, India is well-positioned to maintain its growth in this sector

As India continues to invest in infrastructure, skill development, and production capabilities, its mobile manufacturing industry is poised for even greater success. The country’s journey from a consumer-driven market to a global manufacturing powerhouse is a testament to its resilience and strategic vision, and its role in the global mobile supply chain will only continue to expand in the years ahead. (Vietnam Times)

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The Government has set a target of increasing the manufacturing sector’s contribution to the country’s GDP from 16% to 20%, by the year 2030, the Ministry of Industry said.

Secretary to the Ministry, Shantha Weerasinghe said it also includes raising the role of entrepreneurship in the workforce from 2.8% to 7% and boosting industrial exports’ contribution to GDP from 14% to 20%. 

He pointed out that to achieve these objectives, the “National Industry Policy,” along with the five-year strategic plan for 2023-2027, has been prepared to establish a globally competitive national industry base in Sri Lanka. 

Shantha Weerasinghe further said that the five-year strategic plan for 2023-2027 has already been submitted to the Department of National Planning.

He also emphasized that the Ministry of Industry has played a crucial role in reviving the country’s economy amid past economic crises.

The Secretary to the Ministry of Industry made the remarks while addressing a press briefing held at the Presidential Media Centre (PMC) on Wednesday. (Newswire)

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