Amazing! Over 74% of mobile phones sold in India are Made in India

By: | Published: February 3, 2018 7:05 AM

Over 74% of the mobile phones sold in India, the good news is, are Made in India, up from 70% in 2016 and a mere 19% in 2014, data from Counterpoint suggest. Yet the biggest beneficiaries of this are not Indian firms, but those overseas, in particular, those in China.

made in india, india, rtechnology, chinaImports of mobile phones — like the Google Pixel 2 or the iPhone X — are down dramatically. (Reuters)

Over 74% of the mobile phones sold in India, the good news is, are Made in India, up from 70% in 2016 and a mere 19% in 2014, data from Counterpoint suggest. Yet the biggest beneficiaries of this are not Indian firms, but those overseas, in particular, those in China.

Imports of mobile phones — like the Google Pixel 2 or the iPhone X — are down dramatically, from 205 million in 2014 to 83 million in 2016 and 77 million in 2017; for 2018, this is expected to fall even more, to 31 million. India’s import bill, however, shot up from $8.8 billion in 2014 to $11 billion in 2016 and further to $12.6 billion in 2017; for 2018, this is expected to further rise to $13.3 billion.

Of the total import bill, that made up by finished phones fell from $7.4 billion in 2014 to $4.2 billion in 2016 and $3.4 billion in 2017 — for 2018, it is likely to fall further, to under $2 billion.

Imports of components, however, rose dramatically with very little value addition in India. According to Counterpoint, the value of component imports rose from $1.4 billion in 2014 to $6.8 billion in 2016 and $9.2 billion in 2017; for 2018, the imports of components will be around $11.4 billion.

Domestic value addition, on the other hand, remained minuscule, and rose from just 3.6% by value in 2014 to 5.6% in 2016 and a little over 10% in 2017; in 2018, the value addition is also likely to remain limited, at around 18%.

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