Indian mobile phone manufacturing industry is estimated to reach Rs 1.35 lakh crore by 2019-20, says a report. “The size of the domestic mobile manufacturing industry in FY (financial year) 2019-20 is expected to be Rs 135,000 crore as compared to Rs 94,000 crore in FY 2016-17. For smartphones, the market size of domestic manufacturing in FY 2019-20 will be Rs 120,200 crore,” the joint report released by industry body IAMAI and Enixta Innovations said.
Demand for local components
As per the report, the level of local components used in mobile phones will jump from about 6.1 per cent in 2016 to 25.8 per cent, or Rs 31,000 crore in value, in 2019-20. “The components such as battery, chargers, earphones, packaging, etc have high possibility of local sourcing and assembly,” the report said. Among all the parts, 66.9 per cent of the total non-electronic items are expected to be sourced from the local market, followed by battery packs at 63.7 per cent, cameras at 49.6, display or touch screens at 41.8 per cent, mother boards and sensors at 6.2 per cent.
“Going forward, India needs to build a strong and supportive manufacturing ecosystem for semiconductor component suppliers,” the report said.
Additional Secretary, Ajay Kumar from the Ministry of Electronics and IT said that the government has announced the phase manufacturing programme (PMP) to boost the production of mobile components in the country. “The value of mobile phones that are made in India has jumped about 4-folds in the last three years from Rs 19,000 crore in 14-15 to Rs 90,000 crore. In terms of volume, it has increased from about 3.5 crore to 17.5 crore,” concluded Kumar.