By the year 2020, around 96 percent of all mobile phones which are sold in India will be manufactured here itself, a new report says. A report by Internet and Mobile Association of India (IAMAI) and Enixta Innovations, suggests that the rate of localisation in the manufacturing of smartphones will rise from 6.1 per cent in 2016 to 25.8 per cent in 2019. It is expected that a value of almost Rs 31,000 crore can be generated through local sourcing and assembly. According to the report, every 2 out of 3 mobile phone that is sold in India in 2016, were produced in the domestic market.
The new report, under the name “Indian Mobile Phone market: Emerging Opportunities for fulfilling India’s Digital Economy Dream” says that mobile phone components like a battery pack, non-electronic parts, accessories, packaging, and can easily be made locally. However, when it comes to sourcing main electronic components locally, it will take a longer time. Moreover, the overall localisation rate for domestic manufacturing in 2016 is 6.1 per cent. The report points out that the number is far below the localisation rate among other countries like Vietnam. Notably, domestic mobile phone production in India has been limited to assembling/packaging of SKD (Semi-Knocked Down) kits.
The report provides several other interesting insights as well. For starters, 38 new mobile manufacturing units have been set-up in India between September 2015 and October 2016. The manufacturing plants have a manufacturing capacity of 20 million units per month, and they generate close to 40,000 direct jobs. Half of the 38 manufacturing units are in Uttar Pradesh, Andhra Pradesh and Telangana.
You may also like to watch:
Domestic mobile manufacturing industry in India in the fiscal year 2019-20 is expected to be Rs 135,000 crore as compared to Rs 94,000 in the fiscal year 2016-17. The market size of domestic manufacturing for smartphones in FY 2019-20 will be Rs 120,200 crore.