- India experienced a 23% CAGR surge in mobile phone production, surpassing 2 billion units.
- Fueled by substantial domestic demand, rising digital literacy, and government initiatives, India is the world’s second-largest mobile phone producer.
Under the ‘Make in India’ initiative, mobile phone shipments surpassed the remarkable milestone of 2 billion units between 2014 and 2022. This achievement reflects steady growth with a compound annual growth rate (CAGR) of 23%. This expansion can be largely attributed to the substantial domestic demand, a rise in digital literacy, and proactive efforts by the government. Consequently, India has ascended to become the second-largest producer of mobile phones globally.
The Indian administration has implemented various strategies and programs to fortify domestic manufacturing and enhance value addition. Initiatives such as the Phased Manufacturing Program (PMP), Make in India, Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India) have been introduced to foster local production. These collective measures have catalysed the surge in mobile phone production and solidified India’s position as a significant mobile phone manufacturing industry player.
According to Tarun Pathak, the Research Director, India’s mobile phone manufacturing landscape has significantly transformed. In 2022, an impressive 98% of all shipments within the Indian market were identified as ‘Made in India’, a notable increase from the mere 19% recorded when the current government assumed office in 2014.
The proportion of local value addition in India reached an average of over 15%, a remarkable upturn from the previously meagre single-digit figures of eight years ago. Many firms have established factories in India for mobile phones and essential components, driving investments, jobs, and overall industrial progress. This surge in industrial activity has translated into heightened investments, increased job opportunities, and the overall advancement of the manufacturing ecosystem.
The government aims to make India a leading semiconductor hub with a promising future for increased smartphone production. India will bridge the urban-rural digital gap and become a mobile phone export leader. Through this initiative, the government introduced the Phased Manufacturing Program and raised import duties on finished units and key components to encourage local production and value addition. The ‘Self-Reliant India’ plan introduced the Production Linked Incentive (PLI) for 14 sectors, including mobile phones, leading to increased exports. The government’s future focus lies in establishing India as a semiconductor hub, with a proposed infrastructure investment of $1.4 trillion.
