India’s Electronics Manufacturing Sector Aims for USD 115 Billion in 2024; Mobile Phone Exports Set to Exceed USD 15 Billion
India’s electronics manufacturing sector is poised for substantial growth, targeting a value of USD 115 billion in 2024, marking a 15 percent increase. The India Cellular and Electronics Association (ICEA) Chairman, Pankaj Mohindroo, attributed this growth to the exceptional contribution of mobile phones.
Mobile phone exports during the April-November period of this fiscal have surpassed USD 9 billion, compared to USD 6.2 billion in the corresponding period last year. The production of mobile phones is projected to exceed USD 50 billion by March 2024, showcasing a significant uptick from around USD 42 billion in the previous financial year.
The completion of Google’s Pixel smartphone production in India by the first quarter of 2024 will mark the culmination of manufacturing presence for all global majors in the country.
Pankaj Mohindroo highlighted that the total production of electronic goods in the financial year 2023-24 is estimated to reach USD 115 billion, with mobile phones contributing a substantial portion, exceeding USD 50 billion.
Despite the impressive growth, concerns were raised about unregistered tourism units impacting registered accommodations. Mobile phone exports are anticipated to reach USD 15 billion in FY24, demonstrating a 35 percent growth over the previous fiscal. The April-November period of this fiscal has seen mobile phone exports exceed USD 9 billion, a significant increase from USD 6.2 billion in the same period last year.
Addressing criticism regarding the level of value addition in the country’s indigenous electronics manufacturing, Mohindroo emphasized the industry’s focus on deep manufacturing and increased localization. He noted that the mobile phone industry has achieved near self-reliance in Printed Circuit Boards Assembly (PCBAs), chargers, battery packs, and cables.
While the government has made strides in building a semiconductor ecosystem, with a USD 2.75 billion project by Micron being a significant breakthrough, challenges arose with the unexpected break-up of the Vedanta-Foxconn joint venture for a proposed semiconductor plant. Efforts are underway to establish semiconductor plants, with Tata Electronics, Foxconn, and HCL Group submitting applications.
Faisal Kawoosa, Chief Analyst at Techarc, highlighted the increased value addition in mobile devices, rising from 5-6 percent to up to 28 percent. He emphasized the need to promote design in India products to further enhance value addition.
In conclusion, the electronics manufacturing sector in India anticipates a boost in momentum in 2024, with a focus on increased localisation and value addition, reflecting the industry’s commitment to sustainable growth.