India becomes 2nd largest mobile manufacturing nation: Counterpoint

economictimes.indiatimes.com:

India has become the second largest mobile producing nation as locally made mobile phone shipments crossed the 2 billion cumulative mark in the 2014-2022 period, registering a 23% growth compounded annually, according to a new report. More than 98% of shipments in the overall Indian market were locally made in 2022, compared to 19% in 2014 when the current government took over, according to a report by Counterpoint Research.

The ramp-up in local manufacturing came on the back of huge internal demand, increasing digital literacy, and government push. The report said the average local value addition stands at an average of more than 15% compared to low single digits eight years ago.

«The government now intends to capitalise on its various schemes to make India a 'semiconductor manufacturing and export hub'. Going forward, we may see increasing production, especially for smartphones as India gears to bridge the urban-rural digital divide and also become a mobile exporting powerhouse,» said Tarun Pathak, research director, Counterpoint Research.

The report said the government's schemes such as the production-linked incentive scheme, phased manufacturing program, and others have led to an increase in exports. «It (the government) has proposed a semiconductor PLI scheme and now is focusing more on infrastructure with a proposed investment of $1.3 trillion,» said senior analyst, Prachir Singh.