Mobile manufacturing industry to reach Rs 1.35 lakh crore by FY20

New Delhi: Indian mobile phone manufacturing industry is estimated to reach Rs 1.35 lakh crore by 2019-20, says a report.

"The size of the domestic mobile manufacturing industry in FY (financial year) 2019-20 is expected to be Rs 1,35,000 crore as compared to Rs 94,000 crore in FY 2016-17. For smartphones, the market size of domestic manufacturing in FY 2019-20 will be Rs 1,20,200 crore," the joint report released by industry body IAMAI and Enixta Innovations said.

As per the report, the level of local components used in mobile phones will jump from about 6.1 percent in 2016 to 25.8 percent, or Rs 31,000 crore in value, in 2019-20.

"The components such as battery, chargers, earphones, packaging etc. Have high possibility of local sourcing and assembly," the report said.

Among all the parts, 66.9 percent of total non- electronic item are expected to be sourced from local market, followed by battery pack at 63.7 percent, camera 49.6, display or touch screen 41.8 percent, mother board and sensors 6.2 percent.

"Going forward, India needs to build a strong and supportive manufacturing ecosystem for semiconductor component suppliers," the report said.

Ministry of Electronics and IT Additional Secretary Ajay Kumar said that the government has announced phase manufacturing programme (PMP) to boost production of mobile components in the country.

"Value of mobile phones made in India has jumped about 4 -folds in last three years from Rs 19,000 crore in 2014-15 to Rs 90,000 crore. In terms volume, it has increased from about 3.5 crore to 17.5 crore. Components roadmap will enhance value addition," Kumar said.

He said that government has proposal for making touch panel and lithium ion battery in the country.

Kumar said that the government has set up two bodies, one under RBI and other under the Department of Telecom, that are working on security standards for mobile phones.

"We have to also make sure that mobile is safe and secure. When people are putting trust in this device we have to ensure that mobile is secure for data and other information for which it is being used for," Kumar said.