India Emerges as Second-Largest Mobile Phone Manufacturer Globally : Report

India's mobile phone manufacturing sector has achieved a monumental feat, contributing over 2 billion mobile phones to the global market between 2014 and 2022. This achievement cements India's status as the second-largest mobile phone manufacturer worldwide.

A combination of factors such as government policies, heightened domestic demand, and initiatives to promote local manufacturing have contributed to this remarkable growth.

Key Milestones and Factors Driving Growth

According to an insightful report by Counterpoint Research, the span from 2014 to 2022 saw India's mobile phone production exhibit an impressive Compound Annual Growth Rate (CAGR) of 23 percent. The cumulative tally of 'Made in India' mobile phone shipments exceeded 2 billion units during this period.

The transformation is particularly notable, with domestic shipments shifting from a mere 19 percent being locally produced in 2014 to a staggering 98 percent by 2022.

Major Factors Driving Growth

There are a number of factors that have contributed to India's mobile phone manufacturing growth, including:

• The government's Make in India initiative, which has provided incentives for local manufacturing.

• The increasing demand for mobile phones in India, driven by factors such as rising incomes, growing digital literacy, and the proliferation of affordable smartphones.

• The availability of a large pool of skilled labor in India.

• The government's investment in infrastructure, such as Special Economic Zones (SEZs) and semiconductor manufacturing plants.

Contributing Factors to India's Mobile Manufacturing Boom

Several key factors have propelled India's mobile manufacturing industry to its current position of global significance. The government's visionary 'Make in India' initiative stands as a pivotal catalyst, offering incentives and support to foster local manufacturing.

Additionally, the surging demand for mobile phones within the country's burgeoning population has contributed significantly to this growth trajectory.

Government Initiatives and Ecosystem Development

The report highlights the role of essential government programs like the Phased Manufacturing Program (PMP), Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India) in propelling the expansion of local mobile phone production. These initiatives have yielded tangible outcomes, facilitating enhanced local value addition.

Counterpoint's Research Director, Tarun Pathak, underscores the impact of these initiatives, noting that local value addition has surged to more than 15 percent from the single-digit figure recorded in 2014. This substantial increase in local value addition has resulted in heightened investments, job creation, and the overall advancement of the mobile manufacturing ecosystem.

Future Prospects: India as a Semiconductor Manufacturing Hub

India's impressive achievements in mobile phone manufacturing have set the stage for even more ambitious goals. The government envisions capitalizing on this momentum to position India as a global leader in semiconductor manufacturing and exports.

The move is driven by the desire to bridge the urban-rural digital divide while simultaneously transforming India into a significant mobile phone exporting powerhouse.

Government's Seminal Role

Prachir Singh, an Analyst quoted in the report, elucidates the government's strategic focus on establishing India as a prominent semiconductor hub. The government has unveiled a semiconductor Production Linked Incentive (PLI) scheme designed to offer financial incentives to companies venturing into semiconductor manufacturing on Indian soil.

Furthermore, the government's commitment to infrastructure development, with a substantial investment of $1 trillion, is expected to be a driving force behind these ambitious aspirations.

These measures are poised to propel India's mobile phone manufacturing landscape to unprecedented heights, positioning it as a global hub for semiconductor production.

Some relevant and latest facts about India's mobile phone manufacturing industry:

• In 2022, India produced over 2 billion mobile phones, making it the second-largest mobile manufacturing country in the world, after China.

• The Indian government's Make in India initiative has been a major driver of the growth of the mobile phone manufacturing industry.

• The increasing demand for mobile phones in India is also a major factor contributing to the growth of the industry.

• The availability of a large pool of skilled labor in India is another factor that has helped to boost the growth of the industry.

• The Indian government is planning to invest heavily in infrastructure, which will help to further boost the growth of the mobile phone manufacturing industry.

• India is also well-positioned to become a major player in the global semiconductor manufacturing industry.

Here are some of the latest developments in India's mobile phone manufacturing industry:

• In 2022, the Indian government launched a Production Linked Incentive (PLI) scheme for mobile phone manufacturing, which is expected to attract investments of over $10 billion.

• The government is also planning to invest $1 trillion in infrastructure, which will help to create a more conducive environment for mobile phone manufacturing.

• In 2023, India exported over $5 billion worth of mobile phones, making it the world's third largest mobile phone exporter.

• The Indian government is also planning to launch a semiconductor PLI scheme, which would provide financial incentives to companies that set up semiconductor manufacturing plants in India.

These are just some of the relevant and latest facts about India's mobile phone manufacturing industry. The industry is poised for continued growth in the coming years, driven by the government's policies and initiatives, the growing demand for mobile phones in India, and the availability of a large pool of skilled labor.

Conclusion

India's ascent to becoming the second-largest mobile phone manufacturer globally with a remarkable 2 billion 'Made in India' mobile phones between 2014 and 2022 is a testament to its evolving mobile manufacturing ecosystem.

Government initiatives, increasing domestic demand, and a focus on semiconductor production have collectively contributed to this monumental achievement.

As India sets its sights on becoming a semiconductor manufacturing and export powerhouse, the future holds promising potential for the nation's thriving mobile manufacturing industry.