Report Shows Over 2 Billion Mobile Devices Manufactured in India Under ‘Make In India’ Initiative
“Make in India” mobile phone shipments crossed the 2 billion cumulative unit mark between 2014 and 2022, registering a compound annual growth rate (CAGR) of 23 percent, the latest survey showed on Monday.
Huge domestic demand, increasing digital literacy and government push are the main reasons behind this growth. As a result, India has become the second largest mobile phone manufacturing country according to Counterpoint Research.
“By 2022, more than 98 percent of total market shipments will be ‘Make in India’, compared to just 19 percent when the current government took over in 2014,” Research Director Tarun Pathak said.
“Local value added in India is currently averaging more than 15 percent compared to low single digits eight years ago,” he said.
Many companies are setting up mobile phone and component manufacturing units in the country, which will increase investment, more jobs and overall development of the ecosystem.
The government is now planning to utilize its various schemes to make India a “semiconductor manufacturing and export hub”.
“Going forward, we may see increased production, especially for smartphones, as India strives to bridge the urban-rural digital divide and become a mobile phone export powerhouse,” Pathak noted.
Under the ‘Make in India’ initiative, the government introduced a phased manufacturing program and increased import duties on fully built units and some key components over the years to promote local production and value addition.
The government introduced the PLI system in 14 sectors, including mobile phone manufacturing.
“As a result of all this, exports from India have increased. Going forward, the government will focus on making India a semiconductor hub. It has proposed a semiconductor PLI system and is now focusing more on infrastructure with a proposed investment of $1.4 trillion,” said senior analyst Prachir Singh.
According to Indian tech giant Apple’s ICEA, India is set to cross Rs 1,20,000 crore in mobile exports in the current financial year (FY24), supported by the government’s friendly policies and PLI scheme.
