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.
Achieving the Second Place
The government in Parliament said that India is currently one of the world’s fastest-growing mobile phone manufacturers and has overtaken the United States as the second largest producer of mobile devices in terms of volume thanks to the Production Linked Incentive (PLI) Scheme.
PLI Scheme for Large Scale Electronics Manufacturing, which was announced on April 1, 2020, offers eligible companies involved in the production of mobile phones and certain electronic components, including Assembly, Testing, Marking, and Packaging (ATMP) units, a financial incentive on net incremental sales (over a base year) for five years.
As per the Ratings agency Crisil, ten mobile phone manufacturing companies and six electronic component manufacturing companies are among the sixteen businesses that have received approval under the program.
The country is expected to create devices worth Rs 4-4.5 trillion between FY22 and FY24, driven by the production-linked incentive (PLI) plan, which is in its second year for the majority of enterprises.
Rise in Indian Shares
The report stated that India’s participation in global mobile phone exports, which is currently negligible, is expected to increase in the coming years due to the uptake in local manufacturing. As a result, dependence on China has been decreasing.
Crisil added that India has increased its domestic output, making it largely self-sufficient in terms of consumption. The nation’s mobile consumption increased by 15–20 percent to Rs 2.5 trillion in the fiscal year 2022.
The main drivers of growth were an increase in digitization, a reduction in the lifecycle of the mobile device, and simple financing arrangements. According to the report, the momentum is anticipated to extend into the following fiscal year, increasing consumption to Rs 3.5–4 trillion by FY24.
Furthermore, China’s dependence dropped from 64% in fiscal 2021 to 60% and is predicted to continue to decline over the next few years. However, with increasing production came a 27 percent year-over-year increase in imports of electronic parts used in mobile manufacturing and assembly.
The country’s mobile exports increased by 56 percent year over year in the most recent fiscal year because of the phased manufacturing program and PLI. Over FY23 and FY24, exports are anticipated to increase further and reach Rs 1-1.2 trillion, according to the statement.
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