In a resounding testament to its industrial prowess, India has firmly secured its position as the world’s second-largest mobile manufacturing country, recording an astounding feat of 2 billion mobile phone shipments made within its borders between 2014 and 2022. A recent report by Counterpoint Research reveals the nation’s remarkable achievement, showcasing a dynamic shift in its technological landscape.
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
Domestic Manufacturing Dominance
The report by Counterpoint underscores a remarkable milestone in India’s journey towards technological self-reliance. It reveals that an impressive 98% of all mobile phone shipments in 2022 were locally manufactured, a stark contrast to the mere 19% recorded in 2014. This monumental surge in domestic production can be attributed to several initiatives, programs, and government policies that have been diligently nurtured over the years.
Initiatives Fuelling Growth
Among the pivotal catalysts that have propelled India into this global manufacturing echelon are initiatives like the Phased Manufacturing Program (PMP), Make in India, Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India). These innovative strategies, carefully cultivated by the Indian government, have been instrumental in fostering a climate conducive to local manufacturing and value addition.
A Phenomenal Growth Trajectory
The growth trajectory exhibited by India’s mobile manufacturing sector is nothing short of extraordinary. The Counterpoint report highlights that between 2014 and 2023, the country’s mobile phone production experienced an impressive Compound Annual Growth Rate (CAGR) of 23%. This remarkable expansion is underpinned by the remarkable progression from producing just single-digit percentages of mobile shipments domestically in 2014 to an overwhelming 98% in 2022.
Value Addition and Assembling
The research director at Counterpoint, Tarun Pathak, emphasizes the transformative impact of these initiatives. The report indicates that local value addition has soared to over 15% on average, a striking surge from the single-digit figures recorded merely eight years ago. Pathak notes that more than 200 mobile brands now assemble their devices within India, a stark contrast to the mere two brands before 2014.
Paving the Path for Export Powerhouse
The journey towards self-reliance isn’t India’s sole ambition. The nation is poised to become a mobile exporting powerhouse in the near future. Senior Analyst Prachir Singh, quoted in the Counterpoint report, highlights the strategic role of government policies in this trajectory. Increased import duties on components and completely built units (CBUs), alongside the Phased Manufacturing Program and the Production Linked Incentive (PLI) scheme for various sectors, including mobile phone manufacturing, have bolstered the local manufacturing ecosystem.
Semiconductor Aspirations
Looking ahead, India’s aspirations stretch to encompass semiconductor manufacturing. A proposed $1.4 trillion investment for a semiconductor PLI scheme aims to position India as a semiconductor hub, a move that holds the potential to shape the nation’s technology landscape for years to come. As the mobile manufacturing juggernaut races forward, India’s technological destiny is undeniably on the rise.
