From 2014 to 2022, mobile phone shipments under the 'Make in India' initiative surpassed 2 billion units, a significant milestone. This accomplishment was supported by a remarkable Compound Annual Growth Rate (CAGR) of 23%.
Several factors, including substantial domestic demand, rising levels of digital literacy, and proactive government support, have contributed to the expansion. According to Counterpoint Research, India has secured its position as the world's second-largest producer of mobile phones.
“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.
Numerous companies are establishing mobile phone and component manufacturing facilities in the country. This trend is driving considerable investments, expanding employment opportunities, and fostering the ecosystem's overall growth.
Investments, employment opportunities, and the expansion of the ecosystem as a whole are all stimulated by the establishment of phone and component manufacturing facilities in the country by foreign businesses.
Pathak added, “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,”
The 'Make in India' initiative required the implementation of the Phased Manufacturing Programme, which raised import duties on fully assembled units and essential components progressively. This strategy intended to increase domestic production and value addition.
In addition, the government introduced the Production Linked Incentive (PLI) programme across 14 industries, including the production of mobile phones.
“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,” according to senior analyst Prachir Singh.
According to the India Cellular and Electronics Association (ICEA), India's mobile exports are projected to surpass Rs 1,200,000 crore in the current fiscal year (FY24), primarily driven by tech giant Apple.
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