realme, a rapidly growing smartphone brand in India, has recently announced a significant achievement -- its global smartphone shipments have successfully surpassed the 200 million units mark.
A recent report has suggested that India has now ascended to the position of the world’s second-largest mobile phone producer as the cumulative shipments of domestically manufactured mobile phones have passed the 2-billion mark during the period of 2014-2022.
Riding on the government’s ‘Make in India’ initiative, the country has registered a compound annual growth rate (CAGR) of 23 per cent in mobile phone shipments.
The surge in demand within the country, increasing digital literacy, and strategic governmental support have been driving this growth, the report by global research firm Counterpoint, mentioned.
It said the transformation is also reflected in increased local value addition, which now averages over 15 percent, an improvement from the low single-digit figures eight years ago, the report added.
Speaking on the report, Tarun Pathak, Research Director at Counterpoint, highlighted that local manufacturing has significantly expanded over the years to meet the escalating domestic demand.
In 2022, 98 percent of all mobile phone shipments from India were locally made. This was a staggering leap from the mere 19 percent at the inception of the current government in 2014, he added.
India has witnessed a burgeoning ecosystem with companies establishing manufacturing units for both mobile phones and components. This trend has led to increased investments, job opportunities and the overall development of the industry, the report added.
Role of the govt
The report highlighted that the government has launched many initiatives like Phased Manufacturing Program (PMP), Make in India, Production Linked Incentive (PLI), and the Atma-Nirbhar Bharat scheme.
The Narendra Modi-led NDA government is also aiming to leverage its diverse range of schemes to position the nation as a ‘semiconductor manufacturing and export hub’.
The PLI scheme introduced under the Atma-Nirbhar Bharat campaign, spanning 14 sectors including mobile phone manufacturing, has further stimulated the mobile phone manufacturer growth.