Amitabh Kant, CEO at NITI Aayog has informed that India has emerged as the second largest manufacturer of mobile handsets in the world in terms of volume.
We have got used to the fact that every day there are numerous updates on the latest launches of smartphones in India. Mobile companies like Samsung, Realme, Oppo, Xiaomi, among others have already launched a few models while many are lined up. However, there is some other good news as far as mobile phone manufacturing is concerned. India has emerged as the second largest manufacturer of mobile handsets in the world in terms of volume. As per the information provided by Amitabh Kant, CEO at NITI Aayog, over 200 units are manufacturing cellular mobile phones, up from only 2 units in the year 2014.
He further added that production has gone up from 6 crore mobile phones in 2014-15 to approximately 30 crore mobile phones in 2020-21. “India has emerged as the 2nd largest manufacturer of mobile handsets in the world in volume terms. Over 200 units are manufacturing cellular mobile phones up from only 2 units in 2014. Production has gone up from 6 Cr mobile ph in 2014-15 to app 30 Cr mobile phones in 2020-21.Gr8,” he tweeted.
To make sure these gains are used for further growth, recently, the Ministry of Electronics and Information Technology, released the 2nd Volume of Vision Document on Electronics Manufacturing. The document contains a five-year roadmap and vision for the electronics sector.
The document has been released by the ministry in association with ICEA, and is titled “$300 bn Sustainable Electronics Manufacturing & Exports by 2026.”
This report provides a year-wise break-up and production projections for the various products that will lead to India’s transformation into a USD300 billion electronics manufacturing powerhouse, from the current USD75 billion.
Amongst the key products that are expected to lead India’s growth in electronics manufacturing include Mobile Phones, IT Hardware (laptops, tablets), Consumer electronics (TV and audio), Industrial electronics, Auto electronics, Electronic components, LED Lighting, Strategic electronics, PCBA, Wearables and hearables, and Telecom equipment.
As per the information provided by the ministry, mobile manufacturing is expected to cross USD100 billion annual production – up from the current USD30 billion – is expected to constitute nearly 40 percent of this growth.
The domestic market is expected to increase from USD65 billion to US$180 billion over the next 5 years. This will make electronics amongst India’s 2-3 top ranking exports by 2026.
The five-part strategy to reach the USD300 billion goal, based on an “all of the government” approach, sharply focuses on broadening and deepening electronics manufacturing in India. This will be done by building competitiveness and scale by attracting global electronics manufacturers/brands, shifting and developing sub-assemblies and component ecosystem, building a design ecosystem, nurturing Indian champions and steadily removing cost disabilities faced by India.
It can be known that the USD300 billion electronics manufacturing comes on the back of USD10 billion PLI Scheme announced by the government to propel forward the Semiconductor and Display ecosystem. The government has committed nearly USD17 billion over the next 6 years across four PLI Schemes – Semiconductor and Design, Smartphones, IT Hardware and Components.