India’s remarkable ‘Make in India’ initiative has propelled the nation’s mobile phone production to an extraordinary milestone, surpassing an impressive 2 billion units manufactured between 2014 and 2022. This achievement, marked by a noteworthy Compound Annual Growth Rate (CAGR) of 23 percent, underscores India’s emergence as the world’s second-largest mobile phone producer.
Factors fueling the success
The journey to this remarkable achievement can be attributed to a convergence of factors, including robust domestic demand, increasing digital literacy, and unwavering government support. With more than 98 percent of shipments in 2022 being ‘Make in India,’ a significant leap from the mere 19 percent at the initiative’s inception in 2014, the impact is palpable.
A transformative ecosystem
The surge in production has led several global giants to establish manufacturing units within India’s borders, fostering investments, generating job opportunities, and driving holistic ecosystem growth. The shift in strategy towards domestic production has significantly elevated local value addition, marking an impressive transformation from low single-digit figures to an average of over 15 percent.
Vision for the future
The road ahead envisions even greater strides, particularly in smartphone manufacturing. With a focus on bridging the digital divide between urban and rural areas, India aims to position itself as a potent force in mobile phone exports. As echoed by Research Director Tarun Pathak, the prospect of India becoming a mobile phone exporting powerhouse is increasingly tangible.
Policy innovation and growth enablers
Central to this success has been the implementation of the Phased Manufacturing Programme and the introduction of higher import duties on fully assembled units and vital components. This approach was a strategic maneuver to invigorate local manufacturing and value augmentation.
The government’s forward-thinking Production Linked Incentive (PLI) scheme across 14 sectors, including mobile phone production, further propelled this growth trajectory.
An export thrust
The ripple effects of favorable government policies and the PLI scheme have translated into a surge in exports. Riding this wave, India is poised to achieve mobile exports exceeding Rs 1,20,000 crore during the ongoing fiscal year (FY24).
Remarkably, this surge is predominantly propelled by tech giant Apple, according to insights from the India Cellular and Electronics Association (ICEA).
In essence, India’s ‘Make in India’ initiative has sparked an astonishing growth journey, shaping the nation into a powerhouse of mobile phone production and export. With strategic policies, resilient innovation, and unwavering determination, India’s ascent as a global mobile phone manufacturing hub is indeed remarkable.
