The increasing penetration of mobile phones across the country has led to a consistent rise in the demand of smartphones. The mobile handset market in India has grown by more than 25% in this year. According to the report by KPMG and Assocham, there were 350 million mobile shipments in 2017 as compared to 280 million in 2016. This growth is mainly due to an increase in the demand for smartphones. The report further states that 43% of the total shipments in 2016 were of smartphones only. Due to a wide price range, smartphones have become easily accessible to individuals who are now becoming tech savvy and adapting to the latest changes in telecommunications. An increase in the sale of handset is backed by a huge increase across the smartphone market.
The Indian handset industry had flourished between 2008-2012 and then gradually declined by 30% in the next two years. The reversal of fortune was checked by various incentives such as the establishment of Fast Track Task Force and various other initiatives like Make in India. As a result of the same, the industry saw a tremendous growth which rose to Rs. 90,000 crore in 2016-17. This growth in the handset market along with more connected devices have aided in the growth of various sectors like IT, retail, manufacturing and e-commerce.
The industry insiders are seeking more investment which can be attracted to the country if the incentives are provided to manufacturers. This is done in countries like China and Vietnam. Similar suggestions have been made to the government where incentives can be increased under the Merchandise Exports from India Scheme (MEIS).
Further, with new incentives like freight equalization subsidy and enhanced duty draw back to 3% could attract more players in the market. Any additional incentives across the sector will reap benefits to the same and help in the growth and development of the economy. Local players are trying their best to please the customers with low cost mobile phones and greater connectivity through mobile data. The telecom players in the country have been competing with one another in order to make the most of the demand and growth in the sector. The report states that there has been a noticeable increase in the sales of smartphones in the year 2017. It can be rightly said that this sector has seen a positive change post demonetization.