Make in India: Between 2014 and 2022, mobile phone shipments under the ‘Make in India’ initiative reached over 2 billion units, reflecting a 23% compound annual growth rate (CAGR), as indicated by recent research on Monday.
Make in India
The most recent study, which was published on Monday, found that “Make in India” mobile phone shipments exceeded 2 billion units overall from 2014 to 2022, expanding at a compound annual growth rate (CAGR) of 23%. The primary drivers of this growth are the enormous internal demand, rising digital literacy, and government initiatives. India is now, according to Counterpoint Research, the second-largest producer of mobile phones.
In 2022, more than 98 percent of all shipments will be “Made in India,” up from just 19 percent in 2014 under the previous administration’s rule, predicts Research Director Tarun Pathak.
According to him, local value addition in India has increased from the low single digits eight years ago to an average of more than 15% today.
In the country, many companies are setting up facilities to manufacture mobile phone components, which is promoting the expansion of investments, employment, and the ecosystem as a whole.
The government now plans to take advantage of its numerous initiatives to turn India into a “semiconductor manufacturing and export hub.”.
As India works to close the urban-rural digital divide and develop into a mobile phone exporting powerhouse, Pathak noted that future production could rise, particularly for smartphones.
To encourage local manufacturing and value addition as part of the “Make in India” initiative, the government over time increased import duties on some key components and completely built units as well as the Phased Manufacturing Program.
For 14 industries, including the manufacture of mobile phones, the government launched the Production Linked Incentive (PLI) scheme.
India’s exports have increased as a result of everything. In the future, the government wants to turn India into a center for the semiconductor industry. It has put forth a PLI plan for semiconductors and is currently concentrating more on infrastructure with a proposed investment of $1.4 trillion, according to senior analyst Prachir Singh.
The PLI program and supportive government policies, according to the India Cellular and Electronics Association (ICEA), are expected to help India export mobile devices worth more than Rs 1,20,000 crore in the current fiscal year (FY24), led by tech giant Apple.