India’s Mobile Manufacturing Industry Soars with 99.2% of Phones Made Locally

Highlights

• 99.2% of mobile phones in India are now locally manufactured.
• Indian mobile manufacturing industry’s value reaches $44 billion.
• India sets goal to produce $300 billion in electronics by 2025-26.
• Major tech giants Apple and Google ramp up manufacturing efforts in India.

The Indian mobile phone market has achieved a significant milestone, with 99.2% of the devices used within the country now being manufactured locally.

This impressive figure was recently shared by Union Minister Ashwini Vaishnaw, indicating a major shift in India’s approach to mobile phone production.

Growth and Value of India’s Mobile Manufacturing

Met Mobile industry to review progress.
📱Industry has grown 20 times in 9 years.

👉2014: 78% import dependent
👉2023: 99.2% of all mobiles sold in India are ‘Made In India’. pic.twitter.com/SxUeDwNjsn

— Ashwini Vaishnaw (@AshwiniVaishnaw) November 25, 2023

The value of India’s mobile manufacturing industry has surged to $44 billion which is all but a demonstration of the country’s technological prowess.

India is not only increasing its production volumes but also advancing up the value chain with various mobile phone components now being produced domestically.

India has now emerged as the second-largest producer of mobile phones globally, a significant leap from just 19 percent of shipments being ‘Made in India’ in 2014.

Government’s Ambitious Targets and Global Participation

Now the country is setting higher goals. India’s ambitious target is to manufacture $300 billion worth of electronics products by the 2025-26 fiscal year.

The government’s production-linked incentive (PLI) schemes are likely to play a pivotal role in attracting global manufacturers and diversifying the country’s manufacturing capabilities.

Apple, a major player in the global smartphone market, has been significantly expanding its manufacturing footprint in India.

The company reportedly aims to make India a very valuable market and increase production to over $40 billion in the next 4-5 years.

“There are some big leaders in the Opposition who still believe that mobile phones are imported. They forget that today 99.2 percent of mobile phones used in India are made in India,” Vaishnaw said to reporters on 27th November at Tata’s iPhone plant in Tamil Nadu’s Hosur.

Google, too, has joined the trend, announcing plans to manufacture its Pixel smartphones in India.

For now, the company will initiate this process with its flagship Pixel 8 and Pixel 8 Pro, with the first units expected to roll out in 2024.

India’s Semiconductor Program and Employment Impact

Vaishnaw also highlighted the progress in India’s semiconductor program and the positive impact of mobile phone industry growth on employment.

The construction of plants for chip manufacturing is reportedly progressing well.

In 2022, the ‘Make in India’ initiative saw mobile phone shipments surpass 2 billion units, marked by a Compound Annual Growth Rate (CAGR) of 23 percent over the last nine years.

This growth is attributed to factors like strong domestic demand, increased digital literacy, and supportive government policies.

FAQs

What percentage of mobile phones are manufactured in India?

In India, 99.2% of mobile phones used are manufactured within the country. This marks a significant increase from previous years and demonstrates India’s growing capabilities in mobile phone production.

What is the current value of India’s mobile manufacturing industry?

The mobile manufacturing industry in India has reached a value of $44 billion, showcasing substantial growth and positioning India as the world’s second-largest producer of mobile phones.

What are India’s future goals for electronics manufacturing?

India aims to manufacture $300 billion worth of electronics products by the fiscal year 2025-26. To achieve this, the government is utilizing production-linked incentive (PLI) schemes to attract global manufacturers and enhance local production.

How are global tech companies contributing to India’s manufacturing growth?

Global companies like Apple and Google are significantly expanding their manufacturing in India. Apple plans to increase its production to over $40 billion in the next 4-5 years, while Google intends to start manufacturing its Pixel smartphones, including Pixel 8 and Pixel 8 Pro, in India by 2024.

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