India’s smartphone industry is probably going to witness a 5-7 per cent decline in volumes in this monetary yr ending March 2027 amid world financial uncertainty and inflationary pressures, though the industry remains to be anticipated to register 8-10 per cent value development due to higher product costs in accordance to Chairman of the India Mobile & Electronics Affiliation (ICEA), Pankaj Mohindroo.
In an unique interview with ANI, Mohindroo stated, “Home quantity demand has remained on the similar stage for the final 5 years. This yr, we are going to see a drop of about 5-7 per cent in quantity. In value, we are going to grow due to the higher price of product. From final yr, value development must be between 8-10 per cent.”
He attributed the rise in smartphone costs primarily to higher reminiscence chip prices and world supply-chain disruptions pushed by the bogus intelligence (AI) increase. “The most important problem at this time in the availability chain is the reminiscence. Due to the AI increase in the world, reminiscence provide has change into brief, and costs have gone up very considerably, which is impacting the ultimate invoice of fabric,” he stated.
In accordance to Mohindroo, rising part prices have sharply elevated costs of entry-level smartphones, making financing more and more necessary for first-time customers. “What was ₹4,000-5,000 a number of years again is now ₹10,000-15,000. So, the hole for the first-time person transitioning from a function telephone to a smartphone has change into a lot bigger. That makes financing very important,” he stated.
He additionally commented on the Reserve Financial institution of India’s proposed draft framework, permitting lenders to disable sure smartphone companies in case of mortgage defaults, which may assist revive financing in smaller cities and the entry-level phase. “It’s consent-based. If there’s a default, you’ll be disadvantaged of some companies, and if you’re making good the default, then there may be a direct recourse which the lender has to implement inside one hour,” he stated.
Highlighting the significance of smartphones for monetary inclusion, Mohindroo stated India nonetheless has practically 500 million folks with out smartphones regardless of speedy enlargement of digital public infrastructure. “Our smartphone inhabitants is round 750 million, whereas the nation’s inhabitants is about 1.5 billion. Round 500 million individuals who ought to have smartphones nonetheless wouldn’t have smartphones. They can’t do UPI, and they’re in digital darkness,” he stated.
Calling the Unified Funds Interface (UPI) “the eighth marvel of the world”, he stated smartphones are central to web entry and digital transactions.On manufacturing, Mohindroo stated India has emerged because the world’s second-largest smartphone producer with manufacturing valued at practically USD 70 billion.
“Cell phone exports have gone up 160 instances and at the moment are over ₹2.5 lakh crore. This yr, India will change into the second-largest exporter of cellphones and overtake Vietnam,” he stated.
He added that India’s cell phone manufacturing ecosystem has expanded from round ₹18,000 crore to over ₹6 lakh crore in current years. On semiconductors, Mohindroo stated India has “lastly damaged floor” with 12 semiconductor items at the moment below growth and can also be specializing in chip design and manpower growth.
He additional stated the industry is working in direction of creating Indian-owned smartphone manufacturers and home provide chains throughout the subsequent one to 5 years.
Revealed on May 22, 2026
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