The "Make in India" project has been effective in increasing the cumulative shipments of "Made in India" mobile phones to over 2 billion units between 2014 and 2022, with a compound annual growth rate (CAGR) of 23%. This accomplishment can be credited to the strong domestic demand, rising levels of digital literacy, and effective government initiatives in India. India is now the second-largest producer of mobile phones worldwide as a result.
The Indian government has put in place a number of programmes and initiatives to improve local manufacturing capacity and value addition. These include Atma-Nirbhar Bharat (Self-Reliant India), "Make in India," the Phased Manufacturing Programme (PMP), and the Production-Linked Incentive (PLI). In 2022, over 98% of all shipments in the Indian market will wear the "Made in India" label, up from just 19% in 2014 as a result of these measures.
Additionally, there has been a significant increase in local value addition and the creation of a reliable supply chain. In India, local value addition currently typically exceeds 15%, compared to single-digit rates eight years ago. For mobile phones and their components, many businesses have opened manufacturing facilities in India, which has increased investments, created job opportunities, and expanded the ecosystem overall.
The Indian government's strategic goal is to establish India as a leading "semiconductor manufacturing and export hub." They want to use their numerous plans and initiatives to accomplish this. The government is also concentrating on bridging the digital divide between urban and rural areas and becoming a strong mobile phone export hub.
The effectiveness of the Indian government's actions in promoting significant development in the production of mobile phones has been emphasised. The "Make in India" initiative, the Phased Manufacturing Programme, and higher import taxes on fully built goods and necessary components have promoted domestic production and value addition. India's exports have increased even more as a result of the Production-Linked Incentive (PLI) programme, which was implemented as part of the Self-Reliant India concept.
The goal of the government is to make India a leading semiconductor hub. They have a $1 investment suggested and a semiconductor PLI strategy that focuses on infrastructure development.
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