According to a recent report by Internet and Mobile Association of India (IAMAI) and Enixta Innovations, localisation in smartphones manufacturing rate will increase from 6.1 per cent in 2016 to 25.8 per cent in 2019.
96% Local Manufacturing by 2020
Assembling the phones and sourcing locally will be generating a revenue of Rs 31,000 crore annually. The report claims that 2 out of every 3 mobiles was being produced locally in the country and not exported from China or any other country. By 2020, almost 96 per cent of the mobile phones sold in India will be locally manufactured.
As far as sourcing main electronic components locally is concerned, it will take a longer time. The report points out that the number is far below the localisation rate among countries like Vietnam. Notably, domestic mobile phone production in India is limited to assembling/ packaging of SKD (Semi-Knocked Down) kits.
The manufacturing plants have a manufacturing capacity of 20 million units per month, and they generate close to 40,000 direct jobs. Half of the 38 manufacturing units are in Uttar Pradesh, Andhra Pradesh and Telangana.
The report claims that the China will be displaced as the smartphone importer in the country. This would exceptionally reduce the price of the phones in India.
Domestic mobile manufacturing industry in India in FY 2019-20 is expected to be Rs 135,000 crore as compared to Rs 94,000 in FY 2016-17. The market size of domestic manufacturing for smartphones in FY 2019-20 will be Rs 120,200 crore.