Country to produce mobile phones worth nearly Rs 4.5 trn between FY22-24: Crisil

The growth momentum in mobile phone manufacturing will continue, with the country likely to produce devices worth Rs 4-4.5 trillion between FY22 and FY24 led by the production linked incentive (PLI) scheme, which is in the second year for most companies, ratings agency Crisil has said.

Due to the uptake in local manufacturing, dependence on China has been reducing while India’s share in global exports of mobile phones, which is currently insignificant, is set to rise in coming years, the report said.

“With domestic output rising, India has become largely self-sufficient on the consumption front. In fiscal 2022, the country saw a 15-20% increase in mobile consumption to Rs 2.5 trillion. A fall in the lifecycle of the mobile, increasing digitalisation, and easy financing terms were the major factors that contributed to the growth,” Crisil said. It said the momentum is likely to continue this and next fiscal, boosting consumption to Rs 3.5-4 trillion by FY24.