Industry Outlook

Scale & Market Expansion

• FY 2023-24 mobile production: ₹4.22 lakh crore (vs ₹18,900 crore in FY 2014-15)
• Exports grew from ₹1,566 crore to ₹1.2 lakh crore in same period
• Jan 2025 exports alone: ₹1.5 lakh crore
• Projected FY25 exports: ₹1.8 lakh crore (~40% YoY growth)

Key Growth Drivers

• PLI Scheme (since FY21): Scaled domestic production & exports
• Component Scheme: ₹22,900 crore for boosting local supply chains
• Supply Chain Localization: Import dependence cut from ~78% to 97% self-reliance

Market Dynamics & Segmentation

• ~160 million smartphones shipped in India in 2024
• Entry-level 5G (< ₹10,000) grew rapidly in 2025
• Ultra-premium (> ₹45,000) grew ~15% YoY
• ASP increased ~11% CAGR post-Covid
• Offline retail dominates (~65%), esp. in Tier 2/3 cities

Key Drivers of Growth

Government Policy & PLI Incentives

The Production Linked Incentive (PLI) scheme, launched in FY21, has been instrumental in scaling domestic manufacturing and exports.

With PLI expected to phase out by mid 2026, the government has introduced a ₹22,900 crore Component Manufacturing Scheme to boost local component production and move up the value chain.

Export & Supply Chain Strengthening

India’s smartphone exports are expected to become a top export category by FY25 26. Domestic component manufacturing ecosystems are expanding rapidly. A robust push toward domestic content reduced import dependence from ~78% in 2014 to over 97% self-reliance by FY24.

Market Dynamics & Segmentation

India shipped approximately 160 million smartphones in 2024, with stable shipments and growing inventory built into H1 2025 adjustments.

Entry-level 5G phones (sub-₹10,000) saw exponential growth in early 2025, while ultra premium phones (>₹45,000) grew ~15% YoY. Average Selling Price climbed ~11% CAGR post Covid.

Offline retail continues to dominate (~65%), particularly in Tier 2 and Tier 3 markets, supported by heavy in-store outreach.

Summary: India’s mobile manufacturing industry is riding a powerful wave—driven by bold policy support, global OEM expansion, and rapid export growth. While headwinds remain via global supply chains and regulatory complexity, the momentum toward ₹5 lakh crore production, ₹2 lakh crore exports, and higher local content looks promising. Continued strategic investment in localization, infrastructure, and smart technology will be pivotal to Sustained success.

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