99 percent of mobiles used in India are made in India, says Ashwini Vaishnaw

By: Pune Pulse

November 28, 2023

Pune: On November 27, Union Minister Ashwini Vaishnaw announced that India’s mobile manufacturing industry has exceeded a value of $44 billion, with over 99 per cent of mobile phones now being produced within the country. Addressing the media on India’s progress in electronics manufacturing, the cabinet minister humorously noted that some opposition leaders still believe that mobile phones are imported.

As per the information provided, Tata’s iPhone factory in Hosur, Tamil Nadu, Vaishnaw informed that despite the widespread domestic production of mobile phones, there is still a misconception among certain prominent opposition leaders that they are imported. He emphasized the significant growth of the industry, which has transitioned from a small sector to a $44 billion industry and is on track to exceed $100 billion.

The minister highlighted India’s progress not only in increasing production volumes but also in moving up the value chain, with numerous components now being manufactured domestically. India has set an ambitious target of manufacturing electronics products worth $300 billion by 2025-26 and is offering attractive incentives through its production-linked incentive (PLI) schemes to attract device manufacturers seeking to expand beyond China.

Over the past year, Apple has expanded its local manufacturing of top-of-the-line iPhone models in India. The company aims to increase its production in India to over $40 billion in the next 4-5 years, following its achievement of surpassing the $7 billion production milestone in the previous fiscal year. Google also plans to manufacture its Pixel smartphones in India, with the initial batch of devices expected to be available in 2024.

The company will collaborate with both domestic and international manufacturers for this initiative. India’s progress in electronics and related products over the past 9.5 years has positioned it to pursue export-led growth. Vaishnaw also highlighted the successful construction of a plant for chip production, emphasizing the employment opportunities generated by the industry despite criticism from some individuals.

The ‘Make in India’ initiative for mobile phone manufacturing reached a significant milestone in 2022, with over 2 billion units shipped. This achievement was supported by a remarkable Compound Annual Growth Rate (CAGR) of 23% over 9 years. India’s emergence as the world’s second-largest mobile phone producer can be attributed to factors such as increased domestic demand, higher digital literacy, and proactive government support. According to a report by Counterpoint Research, over 98% of the overall market’s shipments in 2022 were ‘Make in India,’ compared to 19% in 2014. Additionally, local value addition in India has increased to more than 15%, a significant improvement from eight years ago. The establishment of production facilities by numerous corporations in India is leading to substantial capital investments, creating employment opportunities, and promoting comprehensive environmental growth.