Mobile phone manufacturing grows by 21 times in 10 yrs: ICEA

India now meets 97% of its mobile phone demand domestically, with 30% of FY24 production earmarked for export

March 11, 2024

Mobile phone exports from India are expected to reach INR 1,20,000 crore by the end of FY24 - a remarkable 7500% surge in a decade

Smartphone giants Apple and Samsung are crucial in boosting mobile phone exports, contributing significantly to India's position in the international market

The Phased Manufacturing Programme (PMP) in 2017 and the Production Linked Incentive (PLI) scheme have propelled India to become the world's second-largest mobile phone producer

Exponential growth is attributed to a conducive policy environment and close collaboration between industry and key government ministries

Over the past decade, the value of mobile phone manufacturing in India has seen a remarkable 21-fold increase, soaring to INR 4.1 lakh crore. Key government initiatives, notably the Production Linked Incentive (PLI) program, played a pivotal role in luring global players to enhance local production, according to a statement from the India Cellular and Electronics Association (ICEA). Presently, India fulfils 97% of its mobile phone demand domestically, and in the financial year 2024, 30% of the total production is slated for export.

The India Cellular and Electronics Association reported a staggering growth in mobile phone production from INR 18,900 crore in 2014-15 to an estimated INR 4,10,000 crore in FY24, marking a remarkable 2000% increase. In the same vein, mobile phone exports, which were a mere INR 1,556 crore in 2014-15, are projected to reach an estimated INR 1,20,000 crore by the end of FY24, representing a remarkable 7500% surge over the decade.

Smartphone giants like Apple and Samsung have significantly contributed to boosting mobile phone exports from India, with a substantial volume being shipped to the UK, Netherlands, Austria, Italy, the Middle East, North Africa, and South American markets.

On the role of government initiatives, the ICEA highlights the impact of the Phased Manufacturing Programme (PMP) introduced in May 2017, which aimed at promoting domestic mobile handset production. From a meagre two mobile phone factories in 2014, India has become the world’s second-largest mobile phone producer. The Production Linked Incentive (PLI) scheme for Large-Scale Electronics Manufacturing (LSEM) and IT hardware has been instrumental in attracting global manufacturers like Foxconn, Pegatron, Rising Star, and Wistron. At the same time, Samsung operates its second-largest mobile phone factory in Noida.

The ICEA attributes this exponential growth to a conducive policy environment and a close collaboration between the industry and key government ministries, including the Ministry of Electronics and IT, DPIIT, Ministry of Commerce, Ministry of Finance, NITI Aayog, and the PMO. With mobile phones now ranking as India’s fifth-largest export commodity, the nation has successfully established itself as a competitive destination for electronics manufacturing.

Source: Economic Times

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