Value of mobile devices produced in India soars to Rs 4.1 trillion in FY24

The value of mobile devices produced in India both for exports and domestic markets soared to Rs 4.1 trillion in FY24, revealed a preliminary estimate by the Indian Cellular and Electronics Association (ICEA). This marks a 17% year-on-year rise. ICEA represents most of the mobile players in the country.

Mobile Device Production

In exports, Apple topped with the value of mobile units to be shipped out of India is expected to have crossed Rs 1.2 trillion ($14.39 billion) in FY24. This is a 33% rise from Rs 90,000 crore in the previous financial year.The exports in FY24 accounted for nearly 30% of total production value, up from 25% in FY23.

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Meanwhile, the production value of mobile for domestic market is expected to have grown by 11% from Rs 2.6 trillion in FY23 to Rs 2.9 trillion in FY24.

As per Business Standard, the relatively high value of mobile device production was achieved despite stagnant domestic sales volume of mobile phones, with smartphone sales hovering around 145-150 million in FY24 (however, there was an uptick in the last quarter).

PLI Scheme impact

However, this figure is still faraway from the Government's goal of $52-58 billion mobile exports by FY26. The government is expecting the mobile production value to reach $126 billion by FY26.

Having said this, the government's Performance Linked Scheme for mobile devices has clearly influenced the growing share of exports in overall production value. The eligible players under the scheme including Apple’s three vendors -- Foxconn, Wistron India (now Tata Electronics) and Pegatron along with Samsung have committed to export 60% of their production value.

Apple's production in the first 11 months of FY24 crossed Rs 1 trn in FOB (free on board) value, a growth of 100% over the previous year. Moreover, 68% of the production value was for exports.

Increase in average sale price

Business Standard quoted Industry experts and mentioned that the increase in the average sale price of a phone is due to customers' shift towards premiumisation, bolstered by the growing adoption of 5G phones. It mentioned that this trend along with he export of premium-end mobile phones, has helped drive value.