India crosses the 2 billion mark in its journey to become a smartphone manufacturing powerhouse

• India has manufactured 2 billion smartphones between 2014 and 2022.
• The country is now the second largest manufacturer of smartphones after China.
• 98% of the smartphones sold in India in 2022 were manufactured locally.

The push to make India a hub for smartphone manufacturing as part of the Make in India initiative is yielding results. India has emerged as the second largest smartphone manufacturer after China.

According to a report by Counterpoint Research, mobile phone production in India has crossed the 2 billion cumulative mark under the Make in India initiative during 2014-2022.

Increase in shipments

According to the report domestic production of smartphones is expected to hit 270 million this year, up from last year’s 250 million. Most smartphones sold in India presently are manufactured locally. Out of the 250 million smartphones produced last year, the country exported 20% of the devices.

“In 2022, more than 98% of shipments in the overall Indian market were ‘Made in India’, compared to just 19% in 2014,” said Tarun Pathak, research director, Counterpoint Research.

It’s not just production that has been on the rise, local value addition has also reached an all-time high. “Local value addition in India currently stands at an average of more than 15%, compared to the low single digits eight years ago,” Pathak added.

“The government now intends to capitalise on its various schemes to make India a ‘semiconductor manufacturing and export hub’. Going forward, we may see increasing production, especially for smartphones, as India gears to bridge the urban-rural digital divide and also become a mobile phone exporting powerhouse,” Pathak said.

Apple accounts for a huge chunk

According to a report by ET, Apple accounted for 25% of the total value of domestically manufactured smartphones in 2022, more than double the 12% in 2021.

While Apple’s production has increased by 65% year-on-year in 2022, its value has increased by 162%. One of the reasons for this could be the increased sales of premium iPhones.

India records 23% CAGR

India has reportedly recorded a compounded annual growth rate (CAGR) of 23%. Huge internal demand, increasing digital literacy and government’s push are reported to be the top reasons for this growth.

The Indian government has introduced schemes such as Phased Manufacturing Program (PMP), Make in India, Production Linked Incentive (PLI) and Atmanirbhar Bharat to increase local manufacturing.

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