Mobile phone shipments under the 'Make in India' initiative achieved a significant milestone, surpassing 2 billion units cumulatively from 2014 to 2022. This achievement was underpinned by an impressive Compound Annual Growth Rate (CAGR) of 23 percent.
The growth can be attributed to several factors, including substantial domestic demand, rising levels of digital literacy and proactive government support. Consequently, India has now secured its position as the world's second-largest producer of mobile phones, as stated by Counterpoint Research.
“In 2022, more than 98 per cent of shipments in the overall market were ‘Make in India’, compared to just 19 per cent when the current government took over in 2014,” said Research Director Tarun Pathak. “Local value addition in India currently stands at an average of more than 15 per cent, compared to the low single digits eight years ago,” he added.
Many companies are establishing manufacturing units within the country to produce both mobile phones and components. This trend is driving substantial investments, creating more job opportunities and fostering the overall development of the ecosystem.
Companies establishing manufacturing units in the country for phones and components are driving investments, job opportunities and overall ecosystem growth.
“Going forward, we may see increasing production, especially for smartphones, as India gears to bridge the urban-rural digital divide and also become a mobile phone exporting powerhouse,” Pathak added.
The 'Make in India' initiative involved implementing the Phased Manufacturing Programme, progressively raising import duties on fully assembled units and essential components. This strategy aimed to boost domestic manufacturing and value enhancement.
Additionally, the government launched the Production Linked Incentive (PLI) scheme across 14 sectors, encompassing mobile phone production.
“Due to all this, exports from India have increased. Going forward, the government is focused on making India a semiconductor hub. It has proposed a semiconductor PLI scheme and now is focusing more on infrastructure with a proposed investment of $1.4 trillion,” said senior analyst Prachir Singh.
Benefitting from favourable government policies and the PLI scheme, India is poised to exceed Rs 1,20,000 crore in mobile exports during the ongoing fiscal year (FY24), primarily propelled by tech leader Apple, as indicated by the India Cellular and Electronics Association (ICEA).
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
