Arising India: Becoming a Powerhouse in Mobile Phone Manufacturing

Mobile Phone Manufacturing

In a remarkable feat of progress, India has solidified its position as the second-largest mobile phone manufacturing country worldwide, trailing only behind China. A recent report highlights that the cumulative shipments of locally produced handsets have surged past the two-billion mark during the period from 2014 to 2022. This substantial achievement is underpinned by the surge in domestic production. It is expected to reach a staggering 270 million handsets in the current calendar year. It will be marking an impressive growth from the previous year’s figure of 250 million.

The meteoric rise in the production of mobile phones within India can be attributed to several factors. The factors that have catalyzed this transformation. The surge is driven by a robust internal demand. It is propelled by an ever-increasing digital literacy and a concerted government push through strategic initiatives like the Rs 38,000-crore production-linked incentive (PLI) scheme and the phased manufacturing programme. These endeavors have ushered in a new era, fostering a fertile ground for the proliferation of domestic manufacturing.

Make in India

Elevating India’s Global Presence: Mobile Phone Exports Surge, Fueling Competitive Edge

A notable shift is observed in the composition of mobile phone shipments. The year 2022 witnessed a seismic transformation, where over 98% of the total shipments in the Indian market bore the stamp of ‘Make in India.’ This impressive ascent from a mere 19% at the inception of this government in 2014 underscores the stride that India has taken towards self-reliance and indigenous production.

The thrust towards localization has not only been beneficial for the domestic market but has also propelled India into the global arena. The successful export of 20% of the 250 million phones produced in the previous calendar year amplifies India’s emergence as a competitive player on the world stage. Also, this surge in exports is bolstered by strategic partnerships and alliances, contributing to the nation’s trade strength.

A trend of ‘premiumisation’ has emerged as a key contributor to the manufacturing landscape. Despite a marginal 3% decrease in domestic output in 2022, the industry registered an impressive 34% growth in value terms. This growth trajectory is driven by a shift towards premium offerings and the escalating export of high-end smartphones.

An unmistakable shift in brand contribution is seen in the premium segment, where Apple played a pivotal role. Its share of the total value of locally made handsets surged from 12% in 2021 to an impressive 25% in 2022. This surge in production volumes by 65%, coupled with a remarkable 162% increase in value terms, underscores the compelling story of India’s rise as a manufacturing hub.

India’s achievement in mobile phone manufacturing translates into significant economic value. The industry’s contribution soared to around Rs 3.5 lakh crore worth of mobile phones in 2022. A figure projected to further escalate to Rs 4-4.25 lakh crore in 2023.

Mobile Phone

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India’s Rising Competitiveness on the Global Stage

China continues to lead in terms of sheer volume. It produces four times more than India in 2022, India stands out as a robust contender. With 1.8 times more volumes than Vietnam, the third-largest producer, India is undoubtedly making strides toward becoming a manufacturing powerhouse.

The journey is not limited to domestic consumption; India’s footprint in the global market is expanding. The concerted efforts to bridge the urban-rural digital divide are complemented by the nation’s aspiration to become a mobile exporting stronghold. Also, key players like Samsung and contract manufacturers for Apple, including Foxconn, Wistron, and Pegatron, account for a substantial 92% of all exports.

The surge in smartphone exports reinforces India’s influence. Data from Canalys indicates that 13.5 million mobile phone units were exported in the first quarter of 2023. It is followed by an additional 12 million units in the second quarter.

The notable surge in value terms is mirrored in export figures. India exported mobile phones worth $7.48 billion in the first half of 2023. Also, marked a remarkable rise from $2.9 billion the previous year.

The trajectory for India’s mobile phone manufacturing is set to ascend further with the government’s strategic vision. A concerted push to establish India as a semiconductor hub, backed by proposed investments of $1.4 trillion, reflects the nation’s commitment to sustained growth and innovation.

In conclusion, India’s rise in mobile phone manufacturing encapsulates a transformative journey. It underscores economic strength, technological prowess, and global competitiveness. This success story reflects the nation’s resolve to become a leader in the world of electronics manufacturing.

mobile evolution

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