Preliminary assessments from the Indian Cellular and Electronics Association (ICEA) indicate a significant surge in the value of mobile device production in India, reaching ₹4.1 lakh crore ($49.16 billion) according to a Business Standard report. This represents a 17 percent year-on-year (YoY) increase.
Despite stagnant domestic sales volume, the report highlights that the value of mobile exports remains robust. Smartphone sales remained relatively stable at 145-150 million units in FY24, with a slight uptick observed in the last quarter.
The production value for the domestic market is projected to have grown by 11 percent, rising from ₹2.6 lakh crore in FY23 to ₹2.9 lakh crore in FY24.
According to experts cited in the report, the increase in the average sale price is attributed to consumers’ inclination towards premiumization, particularly with the rising adoption of 5G phones. This preference, coupled with the export of high-end mobile phones, significantly contributes to the overall value.
Apple emerges as a leader in export figures, with outbound shipments of mobile devices expected to have surpassed ₹1.2 lakh crore ($14.39 billion) in FY24, marking a 33 percent increase from FY23’s ₹90,000 crore.
Early estimates indicate that exports constituted nearly 30 percent of the total production value in FY24, up from 25 percent in FY23. The production-linked incentive (PLI) scheme for mobile devices, under which eligible players committed to exporting 60 percent of their production value, has evidently influenced the growing share of exports, the report notes.
Key participants in the export surge include Apple’s vendors such as Foxconn, Wistron India (now Tata Electronics), and Pegatron, along with Samsung.
However, while Apple has made a significant contribution, expectations from Chinese companies have not materialized. Additionally, domestic companies, anticipated to emerge as “global champions,” have fallen short of expectations, the report adds.
