India Second Largest Phone Maker With 2 Billion ‘Made in India’ Shipments Between 2014 and 2022: Counterpoint

India’s mobile phone manufacturing industry reportedly produced over 2 billion mobile phones cumulatively between 2014 and 2022, making it the second-largest mobile manufacturing country in the world. This growth can likely be attributed to a number of factors, including the government’s Make in India initiative, which has provided incentives for local manufacturing, and the increasing demand for mobile phones in India. 

According to a report by Counterpoint Research, between 2014 and 2022, India’s mobile phone production grew at a Compound Annual Growth Rate (CAGR) of 23 percent. ‘Made in India’ mobile phone shipments crossed 2 billion cumulative units over this period of time. In 2014, only 19 percent of domestic shipments were locally made, as compared to the 98 percent registered in 2022, the report said.

𝐉𝐮𝐬𝐭 𝐏𝐮𝐛𝐥𝐢𝐬𝐡𝐞𝐝: India Mobile Phone Cumulative Production Crosses 2 Billion Units Under ‘Make in India’ Initiative

𝐊𝐞𝐲 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐨𝐰:
✅ India’s mobile phone production grew at a CAGR of 23% during 2014-2022.
✅ In 2022, more than 98% of shipments… pic.twitter.com/ZRV0hsOBPd

— Counterpoint (@CounterPointTR) August 14, 2023

Increasing internal demands, followed by increasing digital literacy and government incentives to manufacturers are reportedly the major reasons for this growth. The report adds that initiatives like the Phased Manufacturing Program (PMP), Make in India, Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India) contributed to increasing local mobile phone manufacturing with perceivable results.

Counterpoint’s Research Director Tarun Pathak said that local value addition now stands at more than 15 percent, compared to the single digits in 2014. This has reportedly led to growing investments, increasing jobs, and overall ecosystem development.

Pathak added that the government intends to capitalise on this progress by aiming to make India a “semiconductor manufacturing and export hub.” He said that the country might see increasing semiconductor production, especially for smartphones, as India is attempting to bridge the urban-rural digital divide while also trying to become a mobile phone exporting powerhouse.

The report quoted Analyst Prachir Singh, who stated that the government is also focused on making India a semiconductor hub. It has proposed a semiconductor PLI scheme, which would provide financial incentives to companies that set up semiconductor manufacturing plants in India.

The government is reportedly also investing heavily in infrastructure with $1 trillion (roughly Rs. 83,21,600 crore) to further fuel these plans. These measures are expected to further boost mobile phone manufacturing in India and make it a global hub for semiconductor production.