Local Value Addition In Mobile Phones Manufacturing Needs To Go Up To 40%: Govt Official

(MENAFN- KNN India) New Delhi, Dec 6 (KNN) India needs to raise its local value addition in phone manufacturing from the current 10-15 percent to about 35-40 percent, said S Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY).

Speaking at the Global Tech Summit 2023 organised by Carnegie, Krishnan said that it is unlikely for a single country to be able to corner the entire supply chain, and even China accounts for about 40-45 percent of the electronics value chain.

“The global value chains are a marriage of our overall security interests and basic economics of what it means to have division of labour and specialisation. You need to produce where it is most efficient to produce, but a resilient supply chain today is essential,” he said.

India has set a target to produce USD 300 billion in electronics products by 2025-26.

Mobile phone shipments under the 'Make in India' initiative achieved a significant milestone, surpassing 2 billion units in 2022. This was underpinned by an impressive Compound Annual Growth Rate (CAGR) of 23 percent over 9 years.

In 2022, more than 98 percent of shipments in the overall market were 'Make in India', compared to just 19 per cent when the current government took over in 2014. Local value addition in India currently stands at an average of more than 15 per cent, compared to the low single digits eight years ago.

(KNN Bureau)

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