Manufacturing of mobile phones up 21 times in 10 years: ICEA

Mobile manufacturing: The value of mobile phone manufacturing in the country rose 21 times in the last 10 years to Rs 4.1 lakh crore, according to the India Cellular and Electronics Association.

Government policy measures such as the Production Linked Incentive (PLI) scheme played an important part in bringing in global companies for ramping up local production, according to the industry body.

About 97 per cent of the country’s mobile phone demand is fulfilled locally with indigenous production, ICEA said, adding that 30 per cent of the total phones made in India are meant for exports.
 
"Mobile phone production surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4,10,000 crore in FY24, registering an increase of 2000 per cent. In 2014-15, mobile phone exports from India were a mere Rs 1,556 crore. The industry expects to end FY24 with an estimated export of Rs 1,20,000 crore. This would mean a 7500 per cent increase in exports over a decade," ICEA said.

ICEA also shared a note on smartphone manufacturing, saying American technology major Apple and Korea's electronics giant Samsung have an integral part in scaling mobile phone exports from the country.

Devices manufactured from India are being exported in bulk to nations like the United Kingdom, Netherlands, Austria, and Italy along with Middle East, North Africa and markets in South America, as per the note.

"30 per cent of production in FY24 will now be meant for exports. The industry expects to end FY24 with an estimated export of Rs 1.2 lakh crore. Driven by this export growth, mobile phones have now become India's 5th largest export as an individual commodity," the industry body said.

The Indian government in May 2017 declared a Phased Manufacturing Programme (PMP) for promoting domestically-produced mobile handsets.

As part of this initiative, a robust indigenous mobile manufacturing ecosystem was built in India, which gave incentives for large-scale manufacturing. 

While the country had only 2 mobile phone factories in 2014, it is now the second largest producer of mobile phones in the world.

A large part of this can be attributed to the Production Linked Incentive scheme for Large-Scale Electronics Manufacturing (LSEM) and for IT hardware, which has helped India evolve into a combative terminal for manufacturing electronic goods.

As part of the PLI scheme, eligible players can avail incentives between 3 to 5 per cent of the incremental sales value.

The scheme has drawn some of the best contract manufacturers in the world, including Taiwan’s Foxconn, which also produces Apple phones. Additionally, Pegatron, Rising Star and Wistron are looking to establish a production facility in India. 

Samsung also has its second-largest mobile phone factory in Noida.

"This exponential growth in production, exports and self-sufficiency stems from a conducive policy environment, and a close working relationship between industry and key Government Ministries such as the Ministry of Electronics and IT, DPIIT, Ministry of Commerce, Ministry of Finance, NITI Aayog and the PMO," ICEA said.

(With PTI Inputs)