India has achieved a significant milestone by becoming the second-largest mobile phone manufacturing country worldwide, trailing only behind China. The country's locally produced handset shipments exceeded two billion during the period 2014-2022.

The growth in local mobile phone manufacturing has been substantial, with a compounded annual growth rate (CAGR) of 23% between 2014 and 2022. Factors driving this expansion include surging internal demand, increasing digital literacy, and government initiatives such as the Rs 38,000-crore production-linked incentive (PLI) scheme and phased manufacturing program.

Counterpoint Research's recent report highlights that 98% of total shipments in the Indian mobile market in 2022 were "Made in India," a remarkable increase from the mere 19% in 2014.

Exports of Indian mobile phones are on the rise, contributing to the country's manufacturing success. In 2022, 20% of the 250 million phones produced were exported.

While there was a slight dip (3%) in domestic mobile phone production in 2022 due to reduced demand, the industry's value experienced a significant growth of 34% YoY. The trend toward premiumization and an increase in exports of premium smartphones have contributed to this growth.

Apple's presence in the Indian market has substantially expanded, accounting for 25% of the total value of domestically produced handsets in 2022, up from 12% in the previous year. Apple's production volumes witnessed a remarkable 65% YoY growth.

The Indian mobile manufacturing industry's value stood at around Rs 3.5 lakh crore in 2022, as reported by the India Cellular and Electronics Association (ICEA). The association estimates this value to reach Rs 4-4.25 lakh crore in 2023.

China remains the global leader in mobile phone manufacturing, producing four times more than India in 2022. India, however, has outperformed Vietnam, the third-largest producer, by producing 1.8 times more units

India's impressive achievement in electronics manufacturing is evidenced by massive employment generation, the establishment of mega factories, and the rise of Indian manufacturing champions.