India's Smartphone Manufacturing Hits 2.5 Billion Mark in a Decade

The India Cellular and Electronics Association (ICEA) reports that the country's electronics manufacturing sector has achieved its ten-year aim and grown to become the world's second-largest producer of mobile phones.

India manufactured 2.45 billion mobile phones valued at INR 4.1 lakh crore, up from INR 18,900 crore in 2014–15, according to ICEA, which is the trade association for major smartphone makers including Apple, Xiaomi, Oppo, and Vivo.

The trade association went on to state that the industry has changed from being 78% import-dependent in 2014 to 97% self-sufficient at this time. Just 3% of all mobile phones sold in India

Growth in the digital industry and commerce are predicted to drive India's GDP to double from its present level of $3.7 trillion to $7 trillion by 2030.

According to ICEA Chairman Pankaj Mohindroo, "mobile production will play a critical role in electronics manufacturing in both of these areas."

India's Ambitious Plan for Electronics Export Expansion

To boost domestic value addition and generate large-scale manufacturing employment, we must next make sure that we can move electronics GVCs to India.

Consequently, factories that can run at a scale never seen in India before with unparalleled competitiveness are needed," 

Between 2014 and 24, the total estimated value of mobile phone exports was INR 3.2 Lakh Cr. Due to this increase in exports, mobile phones are currently India's fifth-largest export as a whole.

The sector projects that exports would reach INR 1.2 Lakh Cr by the end of FY24, a 7,500% rise in exports over the previous ten years.

This occurs at a time when the majority of smartphone makers worldwide are focusing on the Indian market. Nothing, co-founder of OnePlus, is the most recent.

Due to a number of incentives provided by the Indian government as well as the current geopolitical tensions between Beijing and Washington DC, several of them are moving a portion of their manufacturing from China to India.

India's Attractive Manufacturing Incentives Draw Global OEMs and Partnerships

Original equipment manufacturers (OEMs) have been courted by the Center with the announcement of a production-linked scheme (PLI), and state and local governments have thrown out their arms to welcome them with perks including expedited land acquisition and clearances.

An increasing number of businesses are now heading straight toward India as a result of this.

A few weeks ago, the Chinese smartphone producer BBK Group declared that it will be collaborating with Indian companies Dixon Technologies and Karbonn Group to produce its handsets, which include Oppo, Vivo, and Realme.

Additionally, Google declared at the end of the previous year that it will produce Pixel devices domestically.

India currently produces close to 7% of all iPhones made worldwide as a result of Apple's fast expansion of its production there. In sum, Apple spent INR 1 Lakh Cr producing iPhones in India in 2023.