Make in India Initiative Completes Two Billion Smartphone Shipments, says Counterpoint Research Report
According to a Counterpoint research report, mobile phone shipments surpassed two billion cumulative units under the 'Make in India' initiative from 2014 to 2022, with a compound annual growth rate of 23%. As a result, India has surpassed China to become the world's second-largest producer of mobile phones.
According to the report, the major reasons for this growth are high internal demand, rising digital literacy, and government support.
To increase local manufacturing and value addition, the Indian government has implemented schemes and initiatives such as the phased manufacturing programme (PMP), Make in India, Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India).
"India has come a long way in mobile phone manufacturing. We have seen local manufacturing increase over the years to meet domestic demand. In 2022, more than 98% of shipments in the overall Indian market were 'Made in India', compared to just 19% when the current government took over in 2014," says Counterpoint Research director Tarun Pathak.
This comes at a time when many companies are establishing units in the country to manufacture mobile phones and components, resulting in increased investments, job creation, and overall ecosystem development.
"In addition, we have seen an increase in local value addition and supply chain development in the country." Local value addition in India is now more than 15% on average, up from the low single digits eight years ago," says Pathak.