Updated: August 2, 2017 9:01:26 pm
According to a report by Internet and Mobile Association of India (IAMAI) and Enixta Innovations, localisation in smartphone manufacturing rate will increase from 6.1 per cent in 2016 to 25.8 per cent in 2019. Local sourcing and assembly is expected to generate close to Rs 31,000 crore in value. According to the report, 2 out of every 3 mobile phone sold in India in 2016 were domestically produced. By 2020, almost 96 per cent of the mobile phones sold in India will be locally manufactured.
The ‘Indian Mobile Phone market: Emerging Opportunities for fulfilling India’s Digital Economy Dream’ report suggests that mobile phone components like battery pack, non-electronic parts, accessories, packaging, and can easily be made locally. As far as sourcing main electronic components locally is concerned, it will take a longer time.
Further, the overall localisation rate for domestic manufacturing in 2016 is 6.1 per cent. The report points out that the number is far below the localisation rate among countries like Vietnam. Notably, domestic mobile phone production in India is limited to assembling/ packaging of SKD (Semi-Knocked Down) kits.
The report provide several other interesting insights as well. For starters, 38 new mobile manufacturing units have been set-up in India between September 2015 and October 2016. The manufacturing plants have a manufacturing capacity of 20 million units per month, and they generate close to 40,000 direct jobs. Half of the 38 manufacturing units are in Uttar Pradesh, Andhra Pradesh and Telangana.
Domestic mobile manufacturing industry in India in FY 2019-20 is expected to be Rs 135,000 crore as compared to Rs 94,000 in FY 2016-17. The market size of domestic manufacturing for smartphones in FY 2019-20 will be Rs 120,200 crore.
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