India mobile handset industry can reach $100 billion in exports by 2025 says survey

India can achieve $100 billion in mobile phones and nearly $40 billion in component exports by 2025 if the country adopted three strategies -restart restore and resurgence, a new report on handset manufacturing, released here on Thursday.

In the strategy document titled "Mobile Manufacturing in a post-COVID-19 World" by handset making industry body India Cellular and Electronics Association (ICEA) and consultancy major EY, highlighted
Indian industry’s roadmap to become a global supplier of mobile phones in a world where two countries - China and Vietnam - and five global MNCs dominate over 80% of the world’s export market.

Nearly 198 countries import mobile phones, and till recently, only two countries -- China and Vietnam -- were among the world exporters.

India joined the ranks as a third with a modest US$3 billion exports in 2019-20. It now aims to target the number two spot.

From 2 operating manufacturing units in 2014 the total count of new manufacturing units reached 268 in June 2018 as per a physical verification survey.

"The mobile manufacturing and components sector is ready to lead India's post-COVID-19 exit strategy. Production has restarted. We hope to hit 100% production by August," Pankaj Mohindroo, Chairman, ICEA, told reporters in a video conference.

To attract more mobile manufacturing companies, the government announced Rs 50000 crore worth scheme recently which includes production linked incentives.

"The introduction of the incentive scheme will bring a resurgence in the manufacturing environment and create a competitive global ecosystem for India to capture the global market share of mobile phones, parts and accessories," said Bipin Sapra, Indirect Tax Partner Telecom sector, EY India.

The report also suggested areas of improvement, such as the need to shift large-scale global value chains, reduce cost of inputs and the need to increase competitiveness by building a low-cost domestic ecosystem and seeking partnership with States to address India’s disabilities.