Mobile phone manufacturing in India jumped from ₹18,900 crore in 2014-15 to an estimated ₹4,10,000 crore in FY24, a report by ICEA mentioned. File
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Mobile phone manufacturing in worth phrases jumped 21-fold to ₹4.1 lakh crore in India within the final 10 years as authorities coverage measures just like the PLI scheme performed a vital position in attracting international gamers to spice up native manufacturing, business physique India Cellular and Electronics Association (ICEA) mentioned in an announcement.
India now produces 97% of its total mobile phone demand regionally and 30% of the total manufacturing within the monetary 12 months 2024 is supposed for export, it mentioned.
“Mobile phone production surged from ₹18,900 crore in 2014-15 to an estimated ₹4,10,000 crore in FY24, registering an increase of 2,000%. In 2014-15, mobile phone exports from India were a mere ₹1,556 crore. The industry expects to end FY24 with an estimated export ₹Rs 1,20,000 crore. This would mean a 7,500% increase in exports over a decade,” ICEA mentioned.
According to a notice on manufacturing, within the subject of smartphones, Apple and Samsung, have performed a vital position in boosting mobile phone exports from the nation.
Devices manufactured in India are exported to the United Kingdom, the Netherlands, Austria, and Italy, the notice mentioned, including that these gadgets had been exported to West Asia, North Africa and South American markets.
“30% of production in FY24 will now be meant for exports. The industry expects to end FY24 with an estimated export of ₹1.2 lakh crore. Driven by this export growth, mobile phones have now become India’s fifth largest export as an individual commodity,” the business physique mentioned.
Promoting home manufacturing
In May 2017, the Indian authorities introduced the Phased Manufacturing Programme (PMP) to advertise the home manufacturing of mobile handsets. This initiative helped construct a sturdy indigenous mobile manufacturing ecosystem in India and incentivized large-scale manufacturing. From simply two mobile phone factories in 2014, India now has change into the second-largest mobile phone producer on this planet.
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The Production Linked Incentive scheme for Large-Scale Electronics Manufacturing (LSEM) and for IT {hardware} has performed an instrumental position in making India a aggressive vacation spot for electronics manufacturing.
The PLI scheme presents incentives starting from 3-5% of the incremental gross sales worth for a stipulated interval to eligible gamers. It has attracted main international contract producers, together with Foxconn, Pegatron, Rising Star and Wistron to arrange a manufacturing base in India. Samsung however, operates its second-largest mobile phone manufacturing unit in Noida.
“This exponential growth in production, exports and self-sufficiency stems from a conducive policy environment, and a close working relationship between industry and key Government Ministries such as the Ministry of Electronics and IT, DPIIT, Ministry of Commerce, Ministry of Finance, NITI Aayog and the PMO,” ICEA mentioned.