Central government’s phased manufacturing and production linked incentive scheme have proven a boon for local Smartphone manufacturing in India. The local production saw a surge by 26% during the year while the mobile imports saw a decline of 33% in the fiscal year 2022.
The cut in imports and addition in local production is impressive as it is during the global chip shortage. Three major global manufacturers were able to meet the PLI production targets in the financial year.
The rating agency has credited New Delhi’s phased manufacturing program and PLI scheme for the trends in the mobile manufacturing trends.
CRISIL Report states that the country’s mobile imports decreased by 33% YoY. At the same time, the dependency on China has also reduced from 64 percent to 60 percent in the fiscal year 2021. The medium term is expected to see further fall. On the contrary, an increase of 27% in imports of electronic components used in assembling and manufacturing mobiles has also been seen with the rise in production.
The two schemes supported the mobile exports from India increased 56% YoY. The exports market is expected to cross Rs.1 lakh crore milestone by the year 2023-24.
It is interesting to note that India majorly exports low end phones with price lower than Rs.10,000.
The report said that with the massive adaptability of 4G, smartphone sales in India increased from 113 million to 159-61 million, as per the CRISIL report. At the same time, the sales of feature phones decreased from 140 million to 88-90 million.
What future holds?
The trend will follow in the coming years as well with the Indian Smartphone market’s steady 5-10% annual growth.
India’s share in the global mobile market is negligible at below 1% as compared to China which tops the chart at over 70% and Vietnam at 16%. US, Japan, Hong Kong, Germany, and UAE are top mobile importing countries and China and Vietnam are major exporters.
