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Localisation in smartphone manufacturing to reach 25 per cent by 2019, says a report by IAMAI

August 07, 2017

 

According to a report by IAMAI, India is set to increase its domestic localisation rate from 6.1 per cent in 2016 to 25.8 per cent in 2019, which translates to Rs 310 billion in value generated through local sourcing and assembly.

According to the report, 38 new mobile manufacturing units have been set-up in the country between September 2015 and October 2016, creating a manufacturing capacity of 20 million units per month. The states of Uttar Pradesh, Andhra Pradesh and Telangana have emerged as the mobile phone manufacturing hubs in the country with half of the 38 manufacturing facilities being established in these states.

Further, the report pointed that two out of every three mobile phones sold in India in 2016 were produced domestically. It is estimated that by 2020, almost 96 per cent of the mobile phones sold in India will be locally manufactured.

Further, the size of the domestic mobile manufacturing industry is expected to reach around Rs 1,350 billion in 2019-20 as compared to Rs 940 billion in 2016-17. For smartphones, the market size of domestic manufacturing will be at about Rs 1,202 billion in 2019-20.

 

 
 

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