India second-largest phone maker worldwide: Govt data

“Dependency on China reduced to 60% from 64% in fiscal 2021, and is expected to fall further in the medium term. However, with rising production, imports of electronic components essential for mobile assembling/ manufacturing also increased 27% on-year.”

According to government data, India became the second-largest mobile phone producer in the world after increasing output by 126% between the financial years 2021 and 2022.

Sixteen businesses, including 10 that make mobile phones and 6 that make electrical componenets, have received approval under the programme. According to the ratings agency Crisil, the nation is expected to create devices worth Rs 4-4.5 trillion between FY22-FY24, driven by the production linked incentive (PLI) plan, which is in its second year for the majority of enterprises.

”Due to the Production Linked Incentive (PLI) Scheme, India is currently one of the fastest growing mobile phone manufacturer in the world and has emerged as the second largest manufacturer of mobile handsets in the world in volume terms.PLI Scheme for Large Scale Electronics Manufacturing notified on April 01, 2020 provides financial incentive on net incremental sales (over base year) to eligible companies involved in mobile phone manufacturing and manufacturing of specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units, for a period of five years,” mentioned the government in Parliament.

The report stated that while India's participation in global mobile phone exports, which is currently negligible, is expected to increase in the coming years due to the increase in local manufacturing. As a result, dependennce on China has been decreasing.

“Dependency on China reduced to 60% from 64% in fiscal 2021, and is expected to fall further in the medium term. However, with rising production, imports of electronic components essential for mobile assembling/ manufacturing also increased 27% on-year,” it said.

“With domestic output rising, India has become largely self-sufficient on the consumption front. In fiscal 2022, the country saw a 15-20% increase in mobile consumption to Rs 2.5 trillion. A fall in the lifecycle of the mobile, increasing digitization, and easy financing terms were the major factors that contributed to the growth,” Crisil added. It said the momentum is likely to continue this and next fiscal, boosting consumption to Rs 3.5-4 trillion by FY24.

(With TOI Inputs)