Empowering Mobile Manufacturing: India's Remarkable Journey Towards Self-Reliance

In a remarkable feat, India's mobile phone industry has achieved a significant milestone by surpassing the two-billion cumulative units mark during 2014-2022. This achievement is attributed to the 'Make in India' initiative, a transformative government effort that has propelled India to become the second-largest mobile phone-producing nation globally. With a remarkable compound annual growth rate of 23%, this achievement underscores the nation's rapid progress in the tech manufacturing sector.

The driving forces behind this monumental growth are multifold. The dynamic interplay of internal demand, an upsurge in digital literacy, and the determined push by the government have been pivotal. India's substantial internal demand for smartphones, driven by a burgeoning population and increasing access to technology, provided a strong foundation. The government's strategic interventions, such as the phased manufacturing programme (PMP), 'Make in India', Production Linked Incentive (PLI), and the Atma-Nirbhar Bharat (Self-Reliant India) initiative, further catalysed local manufacturing and value addition.

The mobile phone manufacturing surge has ushered in a new era of economic growth. Notably, numerous companies have set up manufacturing units in India, leading to increased investments and job opportunities. This burgeoning ecosystem encompasses both mobile phones and their components, positioning India as a competitive global player.

A substantial shift has also occurred in terms of value addition and supply chain development. From single-digit figures just eight years ago, local value addition now averages more than 15%. This shift is a testament to the growing sophistication of India's manufacturing capabilities.

The Indian government's ambitions extend beyond mobile manufacturing. Buoyed by the success of its initiatives, it aspires to establish the country as a semiconductor manufacturing and export hub.

At the core of this transformation lies the 'Make in India' flagship program, initiated in 2014 to attract investments across sectors in India. The infusion of foreign direct investments (FDIs) in the manufacturing sector surged exponentially, bolstered by the Production Linked Incentive (PLI) scheme rollout across 14 key manufacturing sectors in FY21. India Ratings and Research reported a dramatic increase in FDI in computer hardware and software, with figures soaring from $12.8 billion (April 2000 to March 2014) to a remarkable $72.7 billion (April 2014 to March 2022).

India's growth trajectory shows no sign of slowing down. With a focus on making India a semiconductor hub, the government has proposed a semiconductor PLI scheme and is investing significantly in infrastructure with a proposed sum of $1.4 trillion. This forward-looking strategy sets the stage for India to continue its journey toward technological self-reliance while offering enticing investment opportunities in India in various sectors.

In conclusion, India's achievement of crossing the two-billion cumulative units mark in mobile phone shipments is a testament to the power of visionary policies and strategic initiatives. The 'Make in India' movement has reshaped the mobile manufacturing landscape and positioned India on the cusp of becoming a global technology and manufacturing powerhouse. With its commitment to self-reliance and innovation, India is poised to create a future laden with unprecedented investment opportunities in India and economic prosperity.