Indian mobile shipments rise to 350mn in 2017: Study
The Indian handset market witnessed a rise in shipments from 280 million in 2016 to 350 million in 2017 found an ASSOCHAM-KPMG joint study. It noted smartphones garnered immense popularity in India over the past four years, accounting for 43% of the total shipments last year. It revealed the industry's revenue increased from Rs. 1,11,000cr in 2015 to Rs. 1,35,000cr in 2016. Know more!
Handsets and telecom services
The joint study named 'Accelerating growth and ease of doing businesses' said the robust growth witnessed by the handset market along with the enhanced telecom services in India have contributed to the growth of various other industries like e-commerce, manufacturing, retail, IT, etc.
FTTF crucial to handset manufacturing in India
The study noted Indian mobile exports thrived during 2008-12, reaching Rs. 12,000cr, before declining by 30% over the next two years. The decline had become one of the major concerns for the government, which established FTTF (Fast Track Task Force) in 2014 to revive the downfall. FTTF aims to boost the number of India-made mobiles to 500mn and exports to 120mn by 2020.
Role played by government's initiatives
The study said the government's initiatives, such as Make in India, Skill India, and others, played a significant role in achieving the 85% growth in handset manufacturing. The revenue in 2015-16 increased to Rs. 54,000cr in 2015-16 and to Rs. 90,000cr in 2016-17.
Export incentives to handset manufacturers in India
The handset manufacturing industry expects the government to increase the current 2% export incentive available to mobile manufacturers under Merchandise Exports from India Scheme (MEIS). It says the government may introduce incentives like freight equalization subsidy and also enhance duty draw to 3% to attract more manufacturers. Countries like China and Vietnam offer significant incentives providing cost-effective production platforms for manufacturing facilities.
Penetration of mobile phones in India
The study found that broader penetration of smartphones and feature phones would facilitate the seamless application of newer technologies like 5G, Internet of Things, Machine-to-Machine (M2M), etc. It would aid the government in reaching the goals set under its Digital India initiative.
