The Indian mobile sector has witnessed a meteoric growth, as highlighted by Ashwini Vaishnaw, the Minister of Electronics and Information Technology. In a social media post, Vaishnaw announced that the Indian mobile industry had expanded by an astonishing factor of 20 in just nine years. This growth is reflected in the significant decrease in import dependency; from being 78% import-dependent in 2014, India has achieved a remarkable milestone where 99.2% of all mobiles sold in the country in 2023 are ‘Made in India’.
This dramatic shift is not just limited to reducing import dependency but also marks a significant contribution to the domestic manufacturing ecosystem. Global smartphone brands like Google, Samsung, and Apple have started assembling their marquee phones in India. This aligns with the Indian government’s ‘Aatmanirbhar Bharat’ initiative, which aims to enhance self-reliance and boost the manufacturing sector. The meeting with industry leaders provided an opportunity for constructive dialogue on future prospects, technological advancements, and collaborative efforts to sustain and further amplify this success.
Furthermore, India has emerged as the second-largest mobile phone manufacturer globally, driven by the Production Linked Incentive (PLI) scheme for mobile manufacturing. The production of handsets has risen from 6 crore units in FY15 to 31 crore units in FY 22. The PLI scheme, notified in April 2020, offers incentives to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components. As a result, significant global and domestic players in electronic manufacturing services have embraced the PLI scheme, with companies like Samsung, Foxconn Hon Hai, and Apple making substantial contributions to the sector’s growth.
Counterpoint Research provides further insights into the Indian smartphone market. The data from Q1 2021 to Q3 2023 shows that India’s smartphone shipments grew by 23% YoY to reach over 38 million units in Q1 2021, which were the highest ever first-quarter shipments. Xiaomi led the market in Q1 2021 with a 26% shipment share. However, the market witnessed a decline of 1% YoY in Q1 2022 and a further 3% YoY decline in Q2 2023. Despite these declines, the share of 5G smartphones in total shipments has been steadily increasing, reaching 50% in Q2 2023. Samsung has consistently been the market leader, with significant growth in the premium segment, and OnePlus has been the fastest growing brand in certain quarters.
In summary, the Indian mobile sector’s growth reflects a strategic shift towards domestic manufacturing, significantly reducing import dependency and positioning India as a key global player in mobile manufacturing. This achievement is a result of concerted efforts by the government and the industry, supported by initiatives like the PLI scheme and the involvement of major global brands in the Indian market.