India becomes second-largest mobile manufacturer; production crosses 2 billion
The 'Make in India' initiative has played a pivotal role in the growth of India's mobile phone industry. From 2014-2022, shipments soared past two billion units, marking a 23% compound annual growth rate (CAGR). According to Counterpoint Research, India is now the second-largest mobile-producing nation in the world. This can be attributed to high domestic demand, increased digital literacy, and strong government support.
Various schemes introduced by government have helped production
In 2022, over 98% of shipments were manufactured locally, a significant increase from a mere 19% in 2014. Government schemes like the Phased Manufacturing Programme and Production Linked Incentive (PLI) have been instrumental in promoting local manufacturing and value addition. As a result, local value addition now averages over 15%, a substantial improvement from the low single digits recorded eight years ago.
India's semiconductor ambitions would further push mobile phone production
India's ambition to become a semiconductor manufacturing and export hub is expected to further propel the growth of mobile phone production, said research director Tarun Pathak. "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," he added.
