Market Trend India: Mobile manufacturing industry

Indian mobile phone manufacturing industry is estimated to reach Rs 1,350 bn by 2019-20.

Indian mobile phone manufacturing industry is estimated to reach Rs 1,350 bn by 2019-20, says a report. “The size of the domestic mobile manufacturing industry in FY (financial year) 2019-20 is expected to be Rs 1,350 bn as compared to Rs 940 m in FY 2016-17. For smartphones, the market size of domestic manufacturing in FY 2019-20 will be Rs 1,202 bn”, the joint report released by industry body IAMAI and Enixta Innovations said.

Demand for local components

As per the report, the level of local components used in mobile phones will jump from about 6.1 per cent in 2016 to 25.8 per cent, or Rs 310 m in value, in 2019-20. “The components such as battery, chargers, earphones, packaging, etc have high possibility of local sourcing and assembly,” the report said. Among all the parts, 66.9 per cent of the total non-electronic items are expected to be sourced from the local market, followed by battery packs at 63.7 per cent, cameras at 49.6, display or touch screens at 41.8 per cent, mother boards and sensors at 6.2 per cent.

“Going forward, India needs to build a strong and supportive manufacturing ecosystem for semiconductor component suppliers,” the report said.

Government initiative

Additional Secretary, Ajay Kumar from the Ministry of Electronics and IT said that the government has announced the phase manufacturing programme (PMP) to boost the production of mobile components in the country. “The value of mobile phones that are made in India has jumped about 4-folds in the last three years from Rs 190 m in 14-15 to Rs 900 m. In terms of volume, it has increased from about 35 m to 175 m,” concluded Kumar.

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