Mumbai: The country’s mobile imports have declined significantly due to the Production Linked Incentive (PLI) scheme and a phased manufacturing program. A report said that mobile phone imports declined by 33 percent in 2021-22 while local production grew by 26 percent during this period.
The CRISIL report states that the growth rate of local production of mobile phones during 2015-16 to 2020-21 has been 33 percent. However, in the financial year 2021-22, this pace has come down slightly to 24 to 26 percent. The report says this increase in production has been achieved despite the current chip crisis.
At the same time, three global manufacturers have achieved the PLI production target in 2021-22. The rating agency says that due to the phased manufacturing program and production-based incentive scheme, the production of mobile phones has increased at the local level.
The report said that in the financial year 2021-22, mobile imports declined by 33 percent on a year-on-year basis. At the same time, the dependence on China for mobiles also decreased to 60 percent, which was 64 percent in 2020-21.
However, the report said phone-device imports from China accounted for 60 percent in 2021-22, despite a huge increase in local production. However, it is less than 64 percent of the previous financial year.