India Becomes the World’s 2nd Largest Mobile Manufacturer: How & Why?

Between 2014 and 2022, India’s mobile phone manufacturing business reportedly manufactured over 2 billion phones, making it the world’s second largest mobile manufacturing country. This expansion is most likely due to a combination of factors, including the government’s ‘Make in India’ effort, which has offered incentives for domestic manufacture, and rising demand for mobile phones in India.

According to a Counterpoint Research analysis, India’s mobile phone production increased at a compound annual growth rate (CAGR) of 23% between 2014 and 2022.

During this time, shipments of Made in India mobile phones surpassed 2 billion units. According to the research, only 19 percent of domestic shipments were created domestically in 2014, compared to 98 percent in 2022.

According to reports, the key causes for this rise include rising internal needs, more digital literacy, and government incentives to producers. According to the report, efforts such as the Phased manufacture Programme (PMP), Make in India Production Linked Incentive (PLI), and Atma Nirbhar Bharat have contributed to increased local mobile phone manufacture with discernible outcomes.

According to Counterpoint Research Director Tarun Pathak, local value addition is currently greater than 15%, up from the single digits in 2014. This is said to have resulted in increased investments, more jobs, and overall ecosystem development. Pathak went on to say that the government plans to capitalise on this accomplishment by making India a semiconductor manufacturing and export hub.

As the country attempts to bridge the urban-rural digital divide while simultaneously becoming a mobile phone exporting powerhouse, the country may witness increased semiconductor production, particularly for smartphones.

According to the report, Analyst Prachir Singh added that the government is also working to make India a semiconductor hub. It has proposed a semiconductor PLI scheme that would offer financial incentives to companies that establish semiconductor manufacturing operations in the country.

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