India’s Mobile Production Inching To Record USD 50 Bn

ENA Sectors 2024-04-03 16:12:46 New Delhi, Apr 3 (KNN) India's mobile device manufacturing sector witnessed remarkable growth in the financial year 2023-24, with the total value of production soaring to Rs 4.1 trillion (USD 49.16 billion), marking an year-on-year increase of at least 17 per cent. According to preliminary estimates by the Indian Cellular and Electronics Association (ICEA), the final production value figure could potentially be even higher by an additional Rs 5,000 crore. This surge was driven primarily by a robust export market, with Apple leading the charge. The value of Apples outbound shipments of mobile devices is expected to have crossed Rs 1.2 trillion (USD 14.39 billion) in FY24, a 33 per cent jump from the previous financial years Rs 90,000 crore. Exports accounted for nearly 30 per cent of the total production value, up from 25 per cent in FY23. Despite this impressive growth, the value of mobile exports still lags behind the governments ambitious electronics policy target of USD 52-58 billion by FY26. The government had originally hoped that mobile device production would hit USD 126 billion by the same year. Interestingly, the surge in production value came despite stagnant domestic sales volume of mobile phones, with smartphone sales hovering around 145-150 million units in FY24. However, an uptick was observed in the last quarter. The production value for the domestic market is expected to have grown by 11 per cent, from Rs 2.6 trillion in FY23 to Rs 2.9 trillion in FY24. Industry experts attribute the increase in average sale price to consumers shift towards premium devices, bolstered by the growing adoption of 5G technology. This trend, coupled with the export of high-end mobile phones, has been instrumental in driving value growth. The Production-Linked Incentive (PLI) scheme for mobile devices, under which eligible players collectively committed to exporting 60 per cent of their production value, has undoubtedly influenced the rising share of exports. Key beneficiaries include Apples three vendors Foxconn, Wistron India (now Tata Electronics), and Pegatron as well as Samsung. (KNN Bureau) 37275 https://knnindia.co.in/news/newsdetails/sectors/indias-mobile-production-inching-to-record-usd-50-bn 2024-04-03 16:12:46 knnindia.co.in India’s Mobile Production Inching To Record USD 50 Bn