India Claims Second Place in Mobile Production as 'Make in India' Spurs 2 Billion Device Milestone: Report

The 'Make In India' and other initiatives such as the Phased Manufacturing Program (PMP), Production Linked Incentive (PLI) and Atma-Nirbhar Bharat (Self-Reliant India) have helped India to become the second-biggest mobile phone-producing country.

Between 2014 and 2022, India registered a compound annual growth rate (CAGR) of 23 per cent in mobile phone shipments, a report by global research firm Counterpoint said.

The growth can be credited to multiple factors, such as significant local demand, increasing digital literacy, and proactive governmental backing. As a result, India has solidified its rank as the second-largest global mobile phone manufacturer.

"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 capitalize 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," Research Director Tarun Pathak said.

Talking about government initiatives, senior Analyst Prachir Singh said that over the years, the Indian government has implemented a range of initiatives that have significantly propelled the growth of mobile phone manufacturing. Through the 'Make in India' campaign, the government introduced the Phased Manufacturing Program and progressively raised import tariffs on fully assembled units and key components, aiming to stimulate local production and enhance value augmentation. As part of the Self-Reliant India strategy, the government rolled out the Production Linked Incentive (PLI) scheme, encompassing 14 sectors, including mobile phone manufacturing. These measures have consequently led to a notable surge in India's exports.

"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," he added.