India’s mobile phone manufacturing industry has achieved a significant milestone, producing over 2 billion mobile phones from 2014 to 2022. This accomplishment has solidified India’s position as the world’s second-largest mobile manufacturing country. The growth of this industry can be attributed to various factors, including the government’s Make in India initiative, which has incentivized local manufacturing, and the growing demand for mobile phones in India.
A recent report by Counterpoint Research reveals that India’s mobile phone production experienced a remarkable Compound Annual Growth Rate (CAGR) of 23% between 2014 and 2022. The shipments of ‘Made in India’ mobile phones exceeded 2 billion units during this period. In 2014, only 19% of domestic shipments were locally made, whereas in 2022, the figure reached an impressive 98%.
𝐉𝐮𝐬𝐭 𝐏𝐮𝐛𝐥𝐢𝐬𝐡𝐞𝐝: India Mobile Phone Cumulative Production Crosses 2 Billion Units Under ‘Make in India’ Initiative
𝐊𝐞𝐲 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐨𝐰:
✅ India’s mobile phone production grew at a CAGR of 23% during 2014-2022.
✅ In 2022, more than 98% of shipments… pic.twitter.com/ZRV0hsOBPd
— Counterpoint (@CounterPointTR) August 14, 2023
This remarkable growth in mobile phone manufacturing in India can be attributed to the increasing internal demand for smartphones. Additionally, the rise in digital literacy and government incentives for manufacturers have played significant roles in facilitating this expansion. Initiatives like the Phased Manufacturing Program (PMP), Make in India, Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India) have considerably contributed to boosting local mobile phone manufacturing in India.
According to Tarun Pathak, Research Director at Counterpoint, the industry has witnessed a substantial increase in local value addition, with more than 15% compared to the single-digit percentage in 2014. This growth has led to increased investments, job creation, and the overall development of the mobile phone manufacturing ecosystem.
Pathak further stated that the Indian government aims to leverage this progress and transform India into a “semiconductor manufacturing and export hub.” The country is actively working towards increasing semiconductor production, particularly for smartphones, as part of its efforts to bridge the urban-rural digital divide and establish itself as a global mobile phone exporting powerhouse.
The report also quoted Analyst Prachir Singh, who highlighted the government’s focus on making India a semiconductor hub. This objective is supported by the proposed semiconductor PLI scheme, which offers financial incentives to companies establishing semiconductor manufacturing plants in India.
To further bolster these plans, the government is heavily investing in infrastructure, with a budget of $1 trillion (roughly Rs. 83,21,600 crore). These measures are expected to provide a significant boost to mobile phone manufacturing in India and position the country as a global semiconductor production hub.
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