The rise of mobile phone usage in India has led to an increase in the demand for these devices. India has emerged as a significant exporter of mobile phones, and this industry continues to grow at an exponential rate. In this blog post, we will delve into the booming business of mobile phone export from India, which has become a thriving industry in recent years.
Market Overview
India has emerged as one of the world’s largest markets for mobile phones, with a customer base of over one billion users. According to Counterpoint Research, the India smartphone market bounced back with 15% YoY growth in Q3 2020 after a challenging H1 2020 due to the Covid-19 pandemic. The ‘Made in India’ initiative launched by the Indian Government has further incentivized the mobile phone manufacturers to set up their factories in India, thereby creating more job opportunities and boosting the country’s economy.
Exports
The growth in demand for mobile phones has led to a significant increase in the export market. India exported more than 200 million mobile phones in 2019 alone. According to the Export Promotion Council for Handicrafts (EPCH), the exports of mobile phones from India have witnessed a year-on-year growth of 15% in the last five years. The value of exports from the country in the FY 2019 was $1.43 billion, up from $0.72 billion in FY2015.
Factors Contributing to the Growth
India has an abundance of skilled labour, which has attracted several foreign mobile phone companies to set up their manufacturing units in the country. Cost-effective labour and a favourable investment environment have led to significant growth in this sector. Additionally, the Government of India’s initiatives such as the ‘Make in India’ and the ‘Digital India’ campaigns have also boosted the mobile phone industry’s growth.
Challenges
There are several challenges that the mobile phone industry faces in India. One of the major concerns is the availability of raw materials. Most of the components used in the manufacturing of mobile phones are imported, making the industry vulnerable to price fluctuations and supply chain disruptions. Furthermore, the competition with prominent mobile phone manufacturers from other countries such as China makes it hard for Indian companies to compete in the international market.
Conclusion
India’s mobile phone industry is indeed on a rise, and with the government’s continued support, it is bound to grow at an even more rapid pace. With the rising demand for affordable, high-quality smartphones, mobile phone exports from India are expected to continue to boom. The mobile phone industry is one of the most promising sectors in India and has the potential to become a global leader in the coming years.
(Note: Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)