2 days Ago
India's mobile industry is on a significant growth trajectory, with projections indicating total production will hit ₹ 5.1 lakh crore this financial year, a 21% increase from the previous year’s ₹ 4.22 lakh crore.
Meanwhile, exports have already surged to ₹ 1.25 lakh crore between April and December 2024. The segment is expected to grow by 35%, potentially reaching ₹1.
75 lakh crore in FY25, up from ₹1.29 lakh crore in FY24. This growth is fueled by a combination of government initiatives like production-linked incentive (PLI) schemes and a rise in domestic manufacturing.
Niket Shah, Chief Investment Officer at Motilal Oswal Mutual Fund, had earlier highlighted the potential for India to tap into a ₹1.5-lakh crore opportunity in mobile phone manufacturing . Shah credited the PLI schemes and India’s ambitions in semiconductor production as key drivers of this growth, noting that Apple alone could account for $10 billion of India’s mobile manufacturing output.
“India has made impressive strides, and with anti-China sentiment rising globally, there is a significant opportunity for India to expand its manufacturing footprint,” Shah said. He pointed to the example of Vietnam, which has seen mobile export figures soar to $120 billion this year, while India, with its growing production capabilities, has the potential to catch up. While India excels in mobile phone assembly, Shah noted that the country still faces challenges in the semiconductor market, which accounts for half of the ₹3 lakh crore mobile phone component market.
However, India’s semiconductor push, including the ₹91,000 crore facility by Tata Electronics and Taiwan's PSMC coming up in Gujarat, is expected to bear fruit by FY28. Prime Minister Narendra Modi’s ambitious target of achieving $500 billion in electronics manufacturing by FY30 underscores the potential of the sector. However, experts caution that India will need to accelerate its growth rate, as current projections fall short of the required 27.
7% annual growth to meet this target..
