India emerges as second-largest phone maker of with 2 billion shipments between 2014 – 2022

India's mobile phone manufacturing industry reportedly produced over 2 billion phones cumulatively between 2014 and 2022, making it the second largest mobile manufacturing country in the world.

This growth can likely be attributed to several factors, including the government's 'Make in India' initiative, which has provided incentives for local manufacturing, and the increasing demand for mobile phones in India.

Reasons for the Growth

According to a report by Counterpoint Research, between 2014 and 2022, India's mobile phone production grew at a Compound Annual Growth Rate (CAGR) of 23 percent. Made in India mobile phone shipments crossed 2 billion cumulative units over this period.

In 2014, only 19 percent of domestic shipments were locally made, as compared to the 98 percent registered in 2022, the report said. Increasing internal demands followed by increasing digital literacy and government incentives to manufacturers are reportedly the major reasons for this growth.

The report adds that initiatives like the Phased Manufacturing Program (PMP), Make in India Production Linked Incentive (PLI), and Atma Nirbhar Bharat (Self Reliant India) contributed to increasing local mobile phone manufacturing with perceivable results.

Expert Analysis

Counterpoint's Research Director Tarun Pathak said that local value addition now stands at more than 15 percent, compared to the single digits in 2014. This has reportedly led to growing investments, increasing jobs, and overall ecosystem development.

Pathak added that the government intends to capitalize on this progress by aiming to make India a semiconductor manufacturing and export hub. The country might see increasing semiconductor production, especially for smartphones, as India is attempting to bridge the urban-rural digital divide while also trying to become a mobile phone exporting powerhouse.

The report quoted Analyst Prachir Singh, who stated that the government is also focused on making India a semiconductor hub. It has proposed a semiconductor PLI scheme, which would provide financial incentives to companies that set up semiconductor manufacturing plants in India.

Government Plans

The government is reportedly also investing heavily in infrastructure with $1 trillion (roughly Rs. 83,21,600 crore) to further fuel these plans. These measures are expected to further boost mobile phone manufacturing in India and are aimed at making it a global hub for semiconductor production.

Source