The Manufacturing-Linked Incentive (PLI) scheme has had a profound influence on India’s cell phone sector, considerably boosting home manufacturing and exports over the previous decade. Nevertheless, the India Mobile & Electronics Affiliation (ICEA) is now searching for additional incentives to maintain and improve this progress.
Development in Cellular Telephone Manufacturing and Decline in Imports
As per the information shared by ICEA, from 2014 to 2024, India’s cell phone manufacturing has seen a dramatic enhance. In 2014-15, manufacturing was valued at Rs 18,900 crore, which surged to Rs 4,20,000 crore by 2023-24. This progress trajectory highlights the effectiveness of the PLI scheme, notably since its implementation in 2020-21.
Cell phone manufacturing through the years:
2014-15: Rs 18,900 crore
2015-16: Rs 54,000 crore
2016-17: Rs 90,000 crore
2017-18: Rs 1,32,000 crore
2018-19: Rs 1,81,000 crore
2019-20: Rs 2,14,000 crore
2020-21 (PLI yr): Rs 2,20,000 crore
2021-22: Rs 2,75,000 crore
2022-23: Rs 3,50,000 crore
2023-24: Rs 4,20,000 crore
Concurrently, cell phone imports as a proportion of the whole market worth have considerably decreased from 78 per cent in 2014-15 to simply 3 per cent in 2023-24. The PLI scheme has performed an important position in lowering import dependency.
Development in Cellular Telephone Exports
The PLI scheme has additionally catalysed a exceptional enhance in cell phone exports. From a mere Rs 1,477 crore in 2015-16, exports soared to Rs 1,29,000 crore in 2023-24.
Cell phone export figures through the years:
2015-16: Rs 1,477 crore
2016-17: Rs 1,149 crore
2017-18: Rs 1,367 crore
2018-19: Rs 11,396 crore
2019-20: Rs 27,225 crore
2020-21 (PLI yr): Rs 22,685 crore
2021-22: Rs 45,000 crore
2022-23: Rs 90,000 crore
2023-24: Rs 1,29,000 crore
Calls for for Additional Development
Regardless of these successes, the home market is slowing down, making export progress essential for sustaining the business. The ICEA is now advocating for extra incentives to advertise native manufacturing of parts utilized in cell phone manufacturing. They’re searching for Rs 40,000-Rs 45,000 crore in direct monetary incentives or by way of an extension of the PLI scheme, unfold over seven or eight years.
“The monetary assist bundle of Rs 40,000-Rs 45,000 crore has been advisable to the ministry. It is going to be unfold over seven or eight years and meant for parts and sub-assemblies. It may well run parallel to the cellular PLI scheme which could have a sundown date [by March 2026],” stated Pankaj Mohindroo, Chairman of ICEA.
ICEA, representing main gamers like Apple, Xiaomi, Oppo, and Vivo, amongst others, emphasises that whereas excessive tariffs have benefited cell phone manufacturing, they haven’t been as efficient for parts or worth addition. Subsequently, focused incentives are mandatory to construct a aggressive parts ecosystem in India.
Because the Union Funds 2024-25 approaches, the business’s name for a complete monetary assist bundle is prone to be a essential consideration for the finance ministry, aiming to maintain the momentum of progress in India’s electronics manufacturing sector.
