India Becoming Powerhouse of Mobile Manufacturing Exports to Exceed USD10 Billion

Investment in the telecom industry is increasing in the country. Mobile exports from India are likely to exceed $10 billion in the current financial year. Under the Atmanirbhar Yojana, the Central Government has launched the Production-Linked Incentive (PLI) scheme in various sectors to promote manufacturing in the country. Its objective is to make manufacturing in the country globally competitive, attract investment, increase exports and reduce dependence on imports.

Communications Minister Ashwini Vaishnaw told reporters told, “Electronics manufacturing and telecom manufacturing will grow rapidly in the country in the coming years.” He told that the American company Apple, which manufactures iPhone, has provided more than one lakh new jobs in the country in the last year and a half. He said that a decade ago most of the components required for manufacturing of mobile phones were imported and now 99 percent components are being made in the country. He said, “Telecom is an emerging sector. The telecom industry has completed the first phase target of starting 5G network before the deadline. 5G network has reached 387 districts in the country.”

According to the India Cellular and Electronics Association, around 2 million jobs have been created directly or indirectly by mobile device manufacturers and their suppliers in the last seven years. Despite a decline of more than 27 percent in the shipment of smartphones in the October-December quarter, the Chinese company Xiaomi Was in first place. Shipments of smartphones declined to 2.96 crore during this period. It was 4.06 crore in the same period of the previous year.

In the report of market research firm IDC, it was told that the decrease in consumer demand due to high inflation has affected the sales of smartphones. Smartphone shipments in the sub Rs 25,000 category have declined by 15 per cent in the past year, while those in the sub Rs 41,000 mid-premium and above premium categories have grown by 20 per cent and nearly 55 per cent, respectively. Apart from this, the category shipments of entry-level smartphones under Rs 12,500 declined by about 46 percent. Upasana Joshi, Research Manager, IDC, said that the decrease in new launches in the category of less than Rs 12,000 has affected the sales.