India becomes second-largest mobile phone maker globally: Government
Indian mobile production with more than doubled in FY22 to make the country the second largest producer of this device globally, the government said.
India produces mobile phones worth RS 5,277 Crore in FY22, up from a device worth 2,334 CRORE RS in FY21, said the government, crediting the incentive scheme related to production for growth.
“Because the incentive scheme related to production (PLI), India is currently one of the fastest growth mobile producers in the world and has emerged as the second largest cellular handset producer in the world in terms of volume,” Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, said in a reply to parliament.
The PLI scheme offers 4 to 6 percent incentives to companies that meet the requirements for pass gradual sales during the basic year of cellphones and electronic components produced in India for a period of five years. The government has agreed to 16 companies to benefit – 10 mobile manufacturers and six electronic component makers.
India produced 300 million cellphones in 2020-21, up from 60 million produced in 2014-15, said Amitabh Kant, CEO Niti Aayog at that time in January this year. The number of mobile manufacturing units in the country rose to 200 out of two during the same period.
With a combined annual growth rate of 6 percent, demand for smartphones in India is expected to reach around 400 million in 2026 of 300 million in 2021, according to the new report by Deloitte.
Contribution 5g
“This high demand will most likely be made after the launch of 5G, which itself will contribute 80 percent of the device (around 310 million units) in 2026,” said the advisory company.
When domestic production increased, Indian mobile imports decreased 33 percent in FY22, said Crisil, citing data compiled from the Directorate General of Foreign Trade.
Increased mobile production, basically, causing an increase in the import of components needed to produce it. The state imported telecommunications devices worth $ 6.48 billion from China in FY21, compared to $ 5.6 billion in FY20.
India is now mostly independent to meet domestic demand, which has increased for years.
Data shows that the increase in domestic production has largely met domestic demand because of Indian mobile exports, although it increased 56 percent in the previous financial year, it remained very small globally.
The dominance of low -cost mobile phones among cellphones produced in India has been referred to as a factor for the low part of the country in exports to the main mobile market.
“India’s exports are mostly consisting of lower class phones, with prices under RS 10,000. But the main markets such as the US, Hong Kong and Japan import mobile phones at more than 15,000 hospitals due to high per capita income, “Crisil said in his report.
However, exports are expected to increase as the main handset makers such as Samsung and Apple increase manufacturing in India.
