With this India has become the second-largest smartphone market globally, Counterpoint said in a statement.
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India has become the second-biggest mobile phone-producing country, trailing only China, after registering a compound annual growth rate of 23 per cent between 2014-22, as per a report by technology market research firm Counterpoint. Shipments of domestically manufactured mobile phones crossed the 2 billion mark during this time, it said.
Mobile phones manufactured in India had a market share of 19 per cent in 2014 and saw a jump to 98 per cent in 2022, the report found.
The report attributed the reasons for this jump to growing demand for cell phones in the country, increased digital literacy and government initiatives to increase local manufacturing such as the Phased Manufacturing Program (PMP), Production Linked Incentive (PLI) and Atma-Nirbhar Bharat (Self-Reliant India) and Make in India.
The government also increased import duties on completely built mobile units and key manufacturing components to aid local manufacturing and value addition, Prachir Singh, senior research analyst at Counterpoint said.
“We have also seen increasing local value addition and supply chain development in the country. Local value addition in India currently stands at an average of more than 15 per cent, compared to the low single digits eight years ago. Many companies are setting up units in the country for manufacturing mobile phones as well as components, leading to growing investments, increasing jobs and overall ecosystem development,” said Tarun Pathak, research director at Counterpoint.
In recent years, global smartphone players like Samsung and Apple have turned to India to wean themselves off dependence on China as the global manufacturing hub. At the same time, Chinese companies like Oppo, Vivo, and Xiaomi, have also established bases in India owing to the importance of India’s burgeoning smartphone owning population.