India is expected to achieve complete self-sufficiency in mobile phone production by the end of this fiscal year. This achievement is likely to be fueled by the local manufacturing for popular models like Apple's Pro and Pro Max models, as well as Google's Pixel smartphones. This significant boost in domestic production, particularly of premium handsets, has reportedly reduced the reliance on imports.
Previously, imports accounted for nearly 3% of smartphones sold in the country, primarily consisting of high-end iPhone models and Google's Pixel lineup. With both
Apple and now producing these devices locally, India is reportedly on track to fulfil its entire mobile phone demand through domestic manufacturing.
A Economic Times report cited one of the officials who remained anonymous saying: "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.”
How govt is working with Apple and Google to make this possible
According to the report, domestic production now accounts for 99% of all mobile phones sold in India. Officils have predicted that local suppliers is soon expected to fulfill the remaining 1% of demand, further solidifying India's position as a global mobile phone manufacturing hub.
Government initiatives and increased investment from major players like Apple and Google made this achievement possible. The government's decision to reduce customs duty on smartphone imports in the FY25 budget, aimed at curbing the grey market and has encouraged companies to ramp up local production.
Apple responded by lowering iPhone prices by 3-4% across its portfolio and commencing local manufacturing of its premium iPhone Pro and Pro Max models. This move has made high-end more accessible to Indian consumers, with estimated savings of around Rs 15,000 per device on the latest models.
Google has also joined the push for local production, recently announcing the manufacturing of its Pixel 8 smartphones in India. These developments signify a major step towards India's goal of becoming a global leader in electronics manufacturing.
"While we are proud of achieving 100% domestic manufacturing, we won't stop here. We are gearing up for a $500 billion electronics production target… We aim to clinch global scale by transforming India into a highly cost competitive manufacturing destination for electronics exports" said Pankaj Mohindroo, chairman of India Cellular and Electronics Association (ICEA).
As per the data shared by the industry body, in FY24, imports accounted for only 2.5% of the total smartphone market value, a notable decline from 4.2% in FY23. This translates to $930 million worth of imported smartphones in FY24, compared to $14 billion in the previous fiscal year. In terms of volume, less than 1% of smartphones sold in India were imported in FY24.