Indian Economy News

Mobile imports down 33% in FY22 as local production rises: Report

A Crisil report claims that the India’s production-linked incentive (PLI) scheme and the phased manufacturing programme have significantly reduced mobile imports, which decreased by 33% in FY22, and increased local output by about 26% over the course of the year.

Between FY16-21, local mobile phone production grew at a 33% annual rate, however the trend slightly slowed in FY22 to 24-26%. Despite the persistent chip shortage, three global manufacturers achieved the PLI production goals in FY22, contributing to this growth.

According to Crisil, the production growth trend would continue, with a 22–26% annual growth rate between FY22-24, or Rs. 4-4.5 lakh crore (US$ 50.59-56.92 billion) in value terms.

India's dependence on China decreased from 64% in FY21 to 60% in FY22, and it is anticipated that this trend would continue in the next years.

However, while output increased, imports of electronic components - which are necessary for the assembly and manufacturing of mobile devices - also increased by 27% annually.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.