Table of Contents
Mobile Manufacturing: Analyzing its Contributions to Indian Economy
Future Potential of India’s Mobile Manufacturing Industry: A 2024 Outlook
Top 5 Challenges for the Indian Mobile Manufacturing Industry: 2024 and Beyond
In the dynamic landscape of India’s mobile phone manufacturing sector, the past decade has witnessed an unprecedented surge, propelling the nation and Indian economy into the global spotlight. With a remarkable 22-fold increase in the industry’s value, reaching ₹4.16 lakh crore in 2023-24, the ‘Make in India‘ initiative has proven to be a catalyst for industrial growth.
Open an account with Angel One.
Mobile Manufacturing: Analyzing its Contributions to Indian Economy
Know about some of the top contributions of mobile manufacturing to Indian economy:
1. Job Creation: Fueling Employment Opportunities
Undoubtedly, one of the most significant impacts of India’s mobile manufacturing boom is the creation of jobs. According to Union Minister Ashwini Vaishnaw, the sector has generated a staggering 12 lakh jobs, which includes indirect as well as direct employment. It not only reflects the industry’s robust growth but also underscores its pivotal role in supporting countless families across the nation.
Read on: Indian Economy Witnessing “Acche Din”: 10 Reasons Why Indians Can Truly Smile in 2024.
2. Global Standing: India Surges to Second Place
India has emerged as the second-largest mobile phone manufacturer globally, trailing only behind China. The Counterpoint Research report highlights that between 2014 and 2022, India’s cumulative shipments of handsets produced locally surpassed 2 billion. In just FY2023, 270 million units is the projected domestic production, solidifying India’s position in the global mobile manufacturing arena.
3. Growth Drivers: Meeting Domestic Demand and Government Initiatives
Several factors contribute to the explosive growth of India’s mobile manufacturing sector. A surge in domestic demand, coupled with increased digital literacy, has played a pivotal role. Government initiatives, including the phased manufacturing program and the PLI (production-linked incentive) scheme of INR 38,000 crores, have bolstered the industry’s growth further, creating a favorable environment for manufacturers and boosting Indian economy even further.
4. The Apple Phenomenon: Global Tech Giants Flock to India
A noteworthy aspect of this narrative is the substantial contribution of international players, especially Apple. In 2022, Apple’s contribution to the total worth of handsets made locally surged to 25%, signifying not only the capacity of the sector for high-quality production but also how much lucrative it is for tech giants across the world. This phenomenon underscores India’s ability to host and collaborate with major players on the international stage.
5. Surge in Exports and Indian Economy: India’s Rise as a Global Manufacturing Hub
Recent announcements by Union Electronics and IT Minister Ashwini Vaishnaw indicate that mobile phone production in India is set to reach $50 billion in the fiscal year 2023-24, with exports projected to hit $15 billion.
Mobile phones have become the fourth-largest export category from India, showcasing the sector’s pivotal role in contributing to the nation’s overall exports. This surge positions India at a major inflection point, with Indian economy gearing up to achieve $1 trillion in total exports.
Future Potential of India’s Mobile Manufacturing Industry: A 2024 Outlook
In a span of just ten years, India’s mobile manufacturing sector has undergone a remarkable transformation, evolving from humble beginnings to emerging as the world’s second-largest mobile phone production hub.
The value of ‘Made in India’ mobile phone production in 2014-15 was a modest ₹18,900 crores. Fast forward to 2023-24, and the industry’s value has soared to an impressive ₹4.16 lakh crores, marking a phenomenal 22-fold increase. This growth is a testament to the growing prowess of Indian economy in the global mobile manufacturing arena.
As we look ahead to 2024 and beyond, India’s mobile manufacturing industry stands at the cusp of even greater achievements. Exports from this sector are projected to reach $15 billion, marking a significant contribution to India’s total exports. The exports are going to touch $1 trillion in the near future.
With a robust foundation, government support, and global recognition, the sector is poised to continue its upward trajectory, contributing not only to the growth of Indian economy but also shaping India’s identity as a formidable player in the global mobile manufacturing landscape.
Top 5 Challenges for the Indian Mobile Manufacturing Industry: 2024 and Beyond
As the industry continues to soar, it faces a set of challenges that require strategic attention for sustained success.
1. Supply Chain Resilience
With India emerging as the world’s second-largest mobile manufacturing hub, ensuring a resilient supply chain becomes paramount. The industry must address potential disruptions, enhance logistics, and secure the flow of raw materials to maintain production efficiency and meet global demands.
2. Technological Advancements and Innovation
As technology evolves rapidly, the Indian mobile manufacturing sector must keep pace with global innovations. Investing in research and development, fostering collaboration between industry players and educational institutions, and promoting a culture of innovation will be crucial to staying competitive in the international market.
3. Skilled Workforce Development
The surge in mobile manufacturing has created millions of jobs. The journey, fueled by the ‘Make in India‘ initiative, has not only bolstered Indian economy but also created a staggering 12 lakh jobs, emphasizing the sector’s integral role in India’s industrial landscape.
However, the industry now faces the challenge of maintaining a skilled workforce. Investing in training programs, skill development initiatives, and collaboration with educational institutions will be essential to meet the industry’s evolving demands and technological advancements.
4. Environmental Sustainability
With increased production comes the responsibility to address environmental concerns. The industry must focus on adopting sustainable manufacturing practices, reducing electronic waste, and implementing eco-friendly initiatives. Balancing Indian economy growth with environmental responsibility is crucial for long-term success.
Read on – India’s Economy in 2024: Financial Predictions by Top Experts.
5. Global Competition and Market Diversification
While India has become a significant player in mobile manufacturing, it faces stiff competition globally. The industry must explore new markets, strengthen diplomatic ties, and diversify its product offerings to remain resilient in the face of geopolitical uncertainties and shifts in the global economy.
The remarkable growth of the Indian mobile manufacturing industry brings forth a new set of challenges. Tackling these challenges strategically will not only ensure sustained success but also solidify India’s position as a global manufacturing powerhouse.
Open an account with Upstox.
Conclusion
While China’s manufacturing prowess remains crucial, India’s ascent as the world’s second-largest manufacturing hub underscores its potential as a global manufacturing powerhouse. Its mobile manufacturing sector has become a powerhouse, driving the growth of Indian economy, fostering employment, and elevating the nation’s global standing. As the industry continues to evolve, India’s trajectory as a global manufacturing hub seems promising, aligning with the vision of a self-reliant and technologically advanced nation.
As India races towards a 5-trillion dollar economy, you too can make huge financial gains. Check out our video on:
