PLI scheme cuts import dependency in domestic smartphone manufacturing by 33%: CRISIL

New Delhi, July 7 (KNN) The government initiated production-linked incentive (PLI) schemes and phased manufacturing plan (PMP) helped in bringing down the import dependency in local manufacturing of smartphones by 33 per cent in FY22, as per CRISIL’s latest findings.

On the consumption front India has become largely self-sufficient owing to the rise in domestic mobile manufacturing, said the report.

With three of the global manufactures Samsung, Wistron and Hon Hai (Foxconn) meeting the PLI production targets in 2022 the domestic mobile manufacturing is expected to grow 24-26 per cent in fiscal 2022, after clocking a 33 per cent compound annual growth rate (CAGR).

The analysts at the rating agency expect the momentum to sustain with the domestic manufacturing market growing at 22-26 per cent between fiscal 2022 and 2024, to Rs 4.0-4.5 lakh crore in value, led by the PLI scheme.

However, while imports of finished smartphone units went down, imports of electronic components necessary for mobile manufacturing went up 27 per cent on-year, said the report.

Local manufacturing was able to absorb the 15-20 per cent increase in mobile consumption in fiscal 2022, valued at Rs 2.5 lakh crore.

India’s contribution in the US’s smartphones demand was negligible at 0-1 per cent and is majorly served by China at 79 per cent.

China and Vietnam are two largest exporters of mobile, while the US, Hong Kong, and Japan were the top mobile importers.  (KNN Bureau)