Mobile phone shipments crossed the two billion cumulative units mark under the Make in India initiative during 2014-2022, registering a 23 per cent compound annual growth rate (CAGR), according to the latest research from Counterpoint’s Made in India service. The huge internal demand, increasing digital literacy and government push are the major reasons for this growth. As a result, India has become the second-biggest mobile phone-producing country. The government has introduced schemes and initiatives such as the Phased Manufacturing Program (PMP), Make in India, production linked incentive (PLI) and Atma-Nirbhar Bharat (Self-Reliant India) to increase local manufacturing and value addition.
Commenting on the report, Tarun Pathak, research director, Counterpoint Research, said, “India has come a long way in mobile phone manufacturing. We have seen local manufacturing increase over the years to meet domestic demand. In 2022, more than 98 per cent of shipments in the overall Indian market were ‘Made in India’, compared to just 19 per cent when the current government took over in 2014. We have also seen increasing local value addition and supply chain development in the country. 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. Many companies are setting up units in the country for manufacturing mobile phones as well as components, leading to growing investments, increasing jobs and overall ecosystem development. The government now intends to capitalise on its various schemes to make India a ‘semiconductor manufacturing and export hub’. 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.”
Meanwhile, Prachir Singh, senior analyst, Counterpoint Research, said, “The Indian government has launched and executed many schemes, which has resulted in a big jump in mobile phone manufacturing over the years. Under the Make in India initiative, the government introduced the Phased Manufacturing Program and increased import duties on completely built units and some key components over the years to push local manufacturing and value addition. Under the Self-Reliant India scheme, the government introduced the PLI scheme for 14 sectors, including mobile phone manufacturing. 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.”