Made-in-India mobile shipments in India crossed the 2 billion units milestone between 2014 and 2022. According to the latest Counterpoint Research report, India has become the second biggest phone manufacturing country worldwide. According to the report, the main reasons behind the growth are digital literacy, massive demand in the market, and the government’s push for the Make-in-India initiative.
Notably, between 2014 and 2023, the country’s mobile phone production grew at an impressive Compound Annual Growth Rate (CAGR) of 23%. Let’s take a look at all details revealed by the Counterpoint report titled, “India Mobile Phone Cumulative Production Crosses 2 Billion Units Under ‘Make in India’ Initiative.”
India is Now the Second-Biggest Phone-Making Country Globally
𝐉𝐮𝐬𝐭 𝐏𝐮𝐛𝐥𝐢𝐬𝐡𝐞𝐝: India Mobile Phone Cumulative Production Crosses 2 Billion Units Under ‘Make in India’ Initiative
𝐊𝐞𝐲 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐨𝐰:
✅ India’s mobile phone production grew at a CAGR of 23% during 2014-2022.
✅ In 2022, more than 98% of shipments… pic.twitter.com/ZRV0hsOBPd
— Counterpoint (@CounterPointTR) August 14, 2023
According to the Counterpoint research, made in India mobile phone shipments crossed 2 billion cumulative units during the 2014-2022 period, registering a CAGR of 23%. 98% of domestic mobile shipments in 2022 were locally made, compared to just 19% in 2014. According to the report, this growth can be attributed to various schemes and initiatives introduced by the Indian government.
These initiatives include the Phased Manufacturing Program (PMP), Make in India, Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India). The government of India is trying to increase local manufacturing and value addition with these initiatives, and results are showing.
Tarun Pathak, research director at Counterpoint, said that the local value addition in India currently stands at an average of more than 15%, which was just single digits eight years ago. Pathak also revealed to TechCrunch that around 200 mobile brands are assembling their device in India today. This number was just two before 2014. Today, India produces 1.8 times more phones than Vietnam and about 1/4 as many as China. Currently, China, India, and Vietnam are the biggest mobile manufacturing nations in the world and in that order.
India is also gearing up to become a mobile exporting powerhouse in the near future. The latest Counterpoint report quotes Senior Analyst Prachir Singh to state that the government boosted local manufacturing and value addition by increasing import duties on components and completely built units (CBU) and introducing the Phased Manufacturing Program.
It also announced the Production Linked Incentive (PLI) scheme for 14 sectors, including mobile phone manufacturing. All of these factors have led to the growth in Indian exports. The government has proposed a semiconductor PLI scheme focused on making India a semiconductor hub with a proposed investment of $1.4 trillion.