India aims for 40% local value addition in phone manufacturing to boost global competitiveness

  • Industry News
  • Dec 06,23
S Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), outlined this goal during the Global Tech Summit 2023 organised by Carnegie on December 5.
India aims for 40% local value addition in phone manufacturing to boost global competitiveness

A senior government official emphasised the need for India to enhance its domestic value addition in phone manufacturing from the current 10-15 per cent to a range of 35-40 percent. S Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), outlined this goal during the Global Tech Summit 2023 organised by Carnegie on December 5.

Krishnan highlighted the importance of competitiveness in the component manufacturing industry for India to retain a significant share of the manufacturing sector. He acknowledged the global reality that no single country can completely dominate the entire supply chain, citing China's 40-45 per cent share in the electronics value chain.

Discussing India's ambitions, Krishnan mentioned the country's target of achieving $300 billion in electronics production by 2025-26. To attract device manufacturers looking to diversify from China, India has implemented production-linked incentive (PLI) schemes, providing generous incentives.

Under the 'Make in India' initiative, mobile phone shipments exceeded 2 billion units in 2022, with an impressive Compound Annual Growth Rate (CAGR) of 23 per cent over nine years. Krishnan highlighted the significant increase in local value addition, reaching over 15 per cent, compared to low single digits eight years ago. He noted that more than 99 per cent of mobile phones used in India are now manufactured locally, contributing to a mobile manufacturing industry valued at over $44 billion.

Apple and Google have played a notable role in India's manufacturing landscape. Apple has intensified local production of its flagship iPhone devices, aiming to surpass $40 billion in production in the next 4-5 years. Google has also announced plans to manufacture Pixel smartphones in India, starting with Pixel 8 and Pixel 8 Pro, with the first devices expected to roll out in 2024 through collaboration with domestic and international manufacturers. These developments align with India's vision of becoming a global manufacturing hub.

Source: Moneycontrol

Related Stories

Electrical & Electronics
Zoho plans $700 million foray into chip manufacturing; compound semiconductors

Zoho plans $700 million foray into chip manufacturing; compound semiconductors

Semiconductors occupy a pivotal position in India's economic agenda, with the government implementing a $10 billion package to fortify the industry's capabilities, positioning the nation to rival es..

Read more
Aerospace Defence
Indian aerospace manufacturers seek global orders; ask GOI for policy push

Indian aerospace manufacturers seek global orders; ask GOI for policy push

The surge in orders has prompted global aerospace suppliers to ramp up sourcing from India. Airbus, in particular, is strengthening ties with Indian partners for various functions such as IT, engine..

Read more
Aerospace Defence
India to build small arms manufacturing unit in Sri Lanka; defence collaboration

India to build small arms manufacturing unit in Sri Lanka; defence collaboration

Sri Lanka could benefit from studying the Indian model and expressed interest in exploring Sri Lanka's own manufacturing capabilities in the defense sector, echoing the sentiment of drawing lessons ..

Read more

Related Products

Servo Drives, Fully Digital

ELECTRICAL & ELECTRONIC EQUIPMENT

Bristol Industrial Electronics offers optimum quality, fully digital servo drives. 

Read more

Request a Quote

Fluorescent Pigments for Traffic Cone

ELECTRICAL & ELECTRONIC EQUIPMENT

Aron Universal Limited offers a wide range of fluorescent pigments for traffic cone.

Read more

Request a Quote

D C Choke

ELECTRICAL & ELECTRONIC EQUIPMENT

Miracle Electronic Devices Pvt Ltd offers a wide range of D C choke.

Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back