News Brief
India Set For 100 Per Cent Smartphone Self-Sufficiency By FY25 End As Local Manufacturing Surges— What You Need To Know
Smartphones being assembled in Noida (Representative Image) (Udit Kulshrestha/Bloomberg via Getty Images)
India is likely to meet all its mobile phone requirements through domestic production by the end of financial year 2024-25.
Apple recently began local manufacturing of its iPhone Pro and Pro Max models, while Alphabet’s Google has started producing Pixel phones locally.
The surge in local manufacturing, including premium handsets, has significantly reduced the need for imports, Economic Times reported citing officials.
“With Apple announcing production of iPhone 16 Pro and Pro Max models from India, the final steps which indicate the success of smartphone production-linked incentive (PLI) scheme are in place,” one of the officials was quoted as saying by ET.
Till FY24, imports accounted for around 3 per cent of smartphones sold in India by value, with most being iPhone Pro models and Google Pixel devices.
Samsung, on the other hand, already manufactures all its products domestically.
The officials cited in the ET report said that in volume terms, 99 per cent of mobile phones are made locally, and the remaining 1 per cent will be filled by domestic suppliers soon.
Following this, Apple slashed iPhone prices by 3-4 per cent across its Indian portfolio, transferring the tax savings to consumers while also announcing local production of iPhone Pro and Pro Max models.
This marked the first global instance where Apple reduced prices of its Pro models, a notable move since the company generally tends to keep prices stable.
In FY23, the Indian smartphone market was valued at $33 billion, with imports constituting $1.4 billion or 4.2 per cent.
By FY24, sales grew to $37 billion, while imports fell to $930 million or 2.5 per cent.
In terms of volume, imports accounted for less than one per cent.
Alongside Apple, Google, and Samsung, Chinese manufacturers like Oppo, Vivo, Xiaomi, Realme, Transsion, and Indian brands such as Lava and Micromax are producing smartphones locally.
