Mobile imports: PLI scheme has helped reduce India’s dependancy on China, says CRISIL report

The Indian government’s Phased Manufacturing Programme (PMP) and the Production Linked Incentive (PLI) schemes seem to be working for the mobile industry in the country. According to a new report from Credit Rating Information Services of India Limited (CRISIL), the production of mobile phones in India has taken a leap after the government introduced these schemes, reducing the country’s imports and dependency on China.
After logging a 33% compound annual growth rate (CAGR) between fiscals 2016 and 2021, domestic mobile production is estimated to have grown 24-26% in fiscal 2022. The report says that despite the ongoing chip shortage, three of the global manufacturers have met PLI production targets during the fiscal.
CRISIL Research expects the growth momentum in production to sustain, with a 22-26% CAGR between fiscals 2022 and 2024 to Rs 4.0-4.5 lakh crore in value terms. The growth is lilely to be led by the PLI scheme, which is in the second year for most players.