Value of mobile device production in India for domestic sales and exports surges to US$ 49.16 billion (Rs. 4.1 lakh crore) in FY24.

Preliminary estimates from the Indian Cellular and Electronics Association (ICEA) reveal a remarkable 17% year-on-year increase, amounting to US$ 49.16 billion (Rs. 4.1 lakh crore), in the value of mobile devices produced in India during FY24. Despite stagnant domestic sales volumes, mobile exports have remained robust, with smartphone sales maintaining stability at 145-150 million units in FY24, experiencing a slight uptick in the final quarter. The production value for the domestic market is projected to have surged by 11%, rising from US$ 31.1 billion (Rs. 2.6 lakh crore) in FY23 to US$ 34.7 billion (Rs. 2.9 lakh crore) in FY24. Experts attribute the average sale price escalation to consumer preference for premiumisation, particularly with the growing adoption of 5G phones, alongside the export of high-end mobile devices.

Apple emerges as a frontrunner in export figures, with outbound shipments of mobile devices anticipated to exceed US$14.39 billion (Rs. 1.2 lakh crore) in FY24, marking a substantial 33% increase from US$ 10.8 billion (Rs. 90,000 crore) in FY23. Early estimates suggest that exports constituted nearly 30% of the total production value in FY24, up from 25% in FY23, propelled by the production-linked incentive (PLI) scheme for mobile devices. Noteworthy participants include Apple's vendors, Foxconn, Wistron India (now Tata Electronics), Pegatron, and Samsung. However, while Apple's contribution is significant, expectations from Chinese companies have not materialized as expected, and domestic companies envisioned as "global champions" have fallen short of expectations.

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