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Business News/ Industry / Manufacturing/  Value of mobile device production in India for domestic sales and exports surges to $4.1 lakh crore in FY24, says report
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Value of mobile device production in India for domestic sales and exports surges to $4.1 lakh crore in FY24, says report

The production value for the domestic market is expected to have grown by 11 percent, from ₹2.6 lakh crore in FY23 to ₹2.9 lakh crore in FY24.

Smartphones production in India has surged to $4.1 trillion in FY2023-24 (Bloomberg)Premium
Smartphones production in India has surged to $4.1 trillion in FY2023-24 (Bloomberg)

Preliminary estimates from the Indian Cellular and Electronics Association (ICEA) suggest a soaring value of 4.1 lakh crore ($49.16 billion) in value of mobile devices produced in India, as per a Business Standard report. This marks a 17 percent year-on-year (YoY) increase.

Notably, despite stagnant domestic sales volume, the value of mobile exports remains high, it said. Smartphone sales remained relatively steady at 145-150 million units in FY24, although there was a slight uptick in the last quarter.

The production value for the domestic market is expected to have grown by 11 percent, from 2.6 lakh crore in FY23 to 2.9 lakh crore in FY24.

Experts attribute the increase in average sale price to consumers' preference for premiumisation, especially with the growing adoption of 5G phones, as per the report. This trend, combined with the export of premium-end mobile phones, contributes significantly to the overall value.

Apple Leads Export Surge

In terms of manufacturers, Apple emerged as a frontrunner in export figures, with outbound shipments of mobile devices anticipated to have exceeded 1.2 lakh crore ($14.39 billion) in FY24. This marks a 33 percent increase from FY23's 90,000 crore, the report added.

Also Read | Apple's Indian ecosystem directly employs over 1,50,000 people after PLI scheme, says report

Early estimates indicate that exports accounted for 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, wherein eligible players committed to exporting 60 percent of their production value, has evidently influenced the growing share of exports. the report noted.

Other notable participants include Apple’s vendors — Foxconn, Wistron India (now Tata Electronics), and Pegatron — along with Samsung.

However, while Apple's contribution has been substantial, expectations from Chinese companies have not materialised. Additionally, domestic companies, anticipated to become "global champions," have fallen short, the report added.

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Published: 03 Apr 2024, 11:19 AM IST
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