Indian Mobile Phone Sector Set for 6% Growth by 2025 Driven by PLI Initiatives
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New Delhi, Dec 27 (NationPress) The Indian mobile phone sector is on track for substantial growth in 2025, with an expected 6% rise (year-on-year) driven by enhanced consumer sentiment and government initiatives aimed at tackling unemployment, according to industry experts on Friday.
The production of mobile phones has skyrocketed from Rs 18,900 crore in 2014-15 to an estimated Rs 4.10 lakh crore in FY24, marking an astonishing 2,000% increase fueled by the Production-Linked Incentive (PLI) scheme.
As per a recent report by Counterpoint Research, India has emerged as the second-largest smartphone market globally by unit volume and third largest by value in the third quarter of 2024. The volume of smartphones grew by 3% in Q3 2024 (July-September), while its value surged by an impressive 12%, achieving a record high for a single quarter.
According to Tarun Pathak, Research Director, Mobile Devices and Ecosystems at Counterpoint Research, the ongoing trend of premiumization is emerging as a crucial factor driving this growth, underscoring consumers’ desires for high-quality, feature-rich devices.
“To leverage this positive trend, brands are likely to intensify their focus on the premium segment. Moreover, original equipment manufacturers (OEMs) are expected to introduce multiple models in the entry-level market, including a 5G smartphone priced below Rs 10,000 in 2025,” Pathak told IANS.
Numerous OEMs are recognizing the growth potential in this market and are anticipated to launch more 5G-enabled devices to seize this opportunity.
Demand for premium devices is also rising in tier-3 and tier-4 cities, which exhibit significant untapped potential.
“This synergy between aspirational demand, innovative offerings, and strategic pricing has enabled India’s smartphone market to reach new heights, with retail value now set to exceed $50 billion,” Pathak stated.
CyberMedia Research (CMR) indicates a strong growth trajectory for 5G and AI smartphones in the nation, projected to grow by 21% year-on-year in 2025.
“Chinese smartphone brands will concentrate on integrating AI features into the value-for-money smartphone segment, particularly in lower tiers,” Prabhu Ram, VP-Industry Research Group, CMR, informed IANS.
The country's electronics exports have also seen a robust rise of 27.4%, reaching $22.5 billion from $17.66 billion during the same period in 2023-24. Within the electronics sector, smartphone exports have recorded a 45% increase as leading companies such as Apple and Samsung boost production in the country.
India achieved record smartphone exports in November this year, surpassing the Rs 20,000 crore threshold in a single month for the first time, predominantly led by Apple.
