SUMMARY
As per ICEA, India produced 2.45 Bn units of mobile phones worth INR 4.1 Lakh Cr, compared to INR 18,900 Cr in 2014-15
The industry expects to end FY24 with an estimated export of INR 1.2 Lakh Cr, a 7,500% increase in exports over a decade
Driven by this export growth, mobile phones have now become India's fifth-largest export as an individual commodity
India’s electronics manufacturing industry has met the target it set a decade ago and has become the second largest maker of mobile phones in the world, according to the India Cellular and Electronics Association (ICEA).
As per ICEA, which represents top smartphone brands like Apple, Xiaomi, Oppo and Vivo, India produced 2.45 Bn units of mobile phones worth INR 4.1 Lakh Cr, compared to INR 18,900 Cr in 2014-15.
The industry body further said that the sector has transitioned from being 78% import-dependent in 2014 to 97% self-sufficiency currently. Only 3% of the total mobile phones sold in India, as reported by Moneycontrol.
“It is believed that the doubling of India’s GDP from the current $3.7 Tn to $7 Tn by 2030 will be led by growth in the digital sector and trade. In both these areas, electronics manufacturing led by mobile production will play a critical role,” said Pankaj Mohindroo, Chairman, ICEA.
“As a next step, we have to ensure that we can shift electronics GVCs to India to create large-scale manufacturing jobs and increase domestic value addition. This, in turn, requires unprecedented competitiveness and factories that can operate at the scale of the kind that has never been witnessed in India”, he added.
Cumulative exports of mobile phones during the period 2014-24 reached a total estimate of INR 3.2 Lakh Cr. Driven by this export growth, mobile phones have now become India’s fifth largest export as an individual commodity.
The industry expects to end FY24 with an estimated export of INR 1.2 Lakh Cr, a 7,500% increase in exports over a decade.
This comes at a time when most of the global smartphone manufacturers are turning to Indian market. The latest is OnePlus cofounder Carl Pei’s Nothing.
Many of them are shifting a part of their production to India from China amid the ongoing geopolitical tensions between Washington DC and Beijing and a slew of incentives being offered by the Indian government.
The Centre has announced a production-linked scheme (PLI) to woo these original equipment manufacturers (OEMs), while local governments have rolled out a red carpet (including offering sops such as fast-tracked land acquisition and approvals) to attract them to their respective states.
This has led to a growing list of companies making a beeline for India. Just weeks ago, Chinese phone maker BBK Group announced a partnership with Indian manufacturers Dixon Technologies and Karbonn Group for the production of its Oppo, Vivo, and Realme smartphones.
Late last year, Google also announced that it will manufacture its Pixel smartphones in the country. Meanwhile, Apple has been rapidly ramping up manufacturing in India, with the country now accounting for nearly 7% of total iPhones produced globally. Overall, Apple manufactured iPhones worth INR 1 Lakh Cr in India in 2023.
