India claims second spot in mobile production with 2 billion devices: Report

By Team NewsableFirst Published Aug 17, 2023, 10:25 AM IST
Highlights

India's mobile phone shipments had a compound annual growth rate (CAGR) of 23%, according to a report by the international research firm Counterpoint. In 2022, 98 percent of all mobile phone shipments from India were locally made. This was a staggering leap from the mere 19 percent at the inception of the current government in 2014.

The ‘Make in India’ initiative of the Central government has propelled the cumulative shipments of domestically manufactured mobile phones past the 2-billion mark during the period of 2014-2022. India's mobile phone shipments had a compound annual growth rate (CAGR) of 23%, according to a report by the international research firm Counterpoint. According to the research, this rise has been fueled by the country's surging demand, rising digital literacy, and intentional government backing.

With these advances, India is currently the second-largest manufacturer of mobile phones in the world. The Phased Manufacturing Programme (PMP), Make in India, Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India) are only a few of the government's measures designed to increase domestic manufacturing. Recent years have seen a rise in domestic mobile phone manufacture thanks to these programmes.

Latest Videos

Also Read | Hackers could steal passwords by listening to keystrokes using AI: Study

In order to fulfil the rising domestic demand, local manufacturing has grown dramatically over time, according to Tarun Pathak, Research Director at Counterpoint. In 2022, domestic production accounted for 98 per cent of all mobile phone shipments from India. From the meagre 19% at the start of the current government in 2014, this was a startling increase.

The research said that the transition is also shown in the growth of local value addition, which currently averages over 15%, an improvement from the low single-digit levels eight years ago. Building on these accomplishments, the Indian government now seeks to position the country as a "semiconductor manufacturing and export hub" by utilising a variety of initiatives. The Production Linked Incentive (PLI) scheme, introduced under the Atmanirbhar Bharat campaign, spanning 14 sectors including mobile phone manufacturing, has further stimulated growth.

Also Read | Google rolls out new AI search on Chrome to summarise web pages

click me!