Thu Jul 24 00:15:00 UTC 2025: Here’s a summary and a news article rewrite of the provided text:

**Summary:**

A new study by the Centre for Development Studies (CDS) challenges previous skeptical analyses of India’s mobile phone manufacturing industry. The report claims domestic value addition has reached 23%, much higher than earlier estimates, arguing that the assumption that all imported components are exclusively for phone assembly and re-export is misleading. The study, presented at an India Cellular and Electronics Association (ICEA) event, suggests focusing on scaling assembly operations in the medium term and integrating Chinese firms into the Indian electronics manufacturing ecosystem to foster growth and ease capital flow restrictions.

**News Article:**

**Indian Study Debunks Doubts, Claims Mobile Phone Manufacturing Creates Real Value**

*NEW DELHI, July 24, 2025* – A new report by the Centre for Development Studies (CDS) in Thiruvananthapuram is challenging commonly held skepticism surrounding India’s mobile phone manufacturing industry. The study asserts that domestic value addition has reached a significant 23%, a figure far exceeding previous single-digit estimates.

The report directly counters the argument, notably put forth by former RBI Governor Raghuram Rajan, that India remains a net importer in effect, despite phone assembly, due to reliance on imported components. CDS Director C. Veeramani argues this claim is based on a “misleading assumption” that all imported components are exclusively for mobile phone production and subsequent re-export.

“Our analysis of data from the Annual Survey of Industries shows that the actual use of imported components in the mobile phone sector is less than 25%,” Dr. Veeramani said at an event hosted by the India Cellular and Electronics Association (ICEA). He added that the CDS estimate of domestic value addition is even higher than ICEA’s own calculations.

While the Indian government has touted the success of mobile phone manufacturing, propelled by initiatives like the Production Linked Incentive (PLI) scheme, concerns have persisted about the actual economic benefit due to the assembly accounting for a smaller portion of the cost (4%). Still, ₹4.1 lakh crore of finished mobile phones were manufactured in India in 2024.

Looking forward, the CDS report recommends a strategy focused on scaling assembly operations in the medium term. In addition, in a departure from some current strategies, Dr. Veeramani emphasized the importance of integrating Chinese firms into the Indian electronics manufacturing landscape, stating that excluding China would be detrimental to India’s long-term growth. He argued that Chinese investment would incentivize them to facilitate the flow of capital goods and personnel to India, addressing recent challenges faced by some manufacturers.

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