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India manufactured wearables such as earphones and smartwatches worth Rs 8,000 crore in 2022-23, up from negligible levels in FY22, boosted by the implementation of phased manufacturing plan (PMP).
In FY24, the industry is hopeful of doubling production to Rs 15,000-17,000 crore, according to data shared with the government.
The government’s vision is to achieve $300 billion electronics manufacturing in the country by 2026 and wearables production is expected to contribute $8 billion (Rs 65,000 crore), of which $3 billion (Rs 25,000 crore) will be exports.
As per an analysis done by Feedback Advisory and India Cellular and Electronics Association (ICEA), India accounts for 4-5% of global wearables market by value, which is largely met through imports from China.
Positive policies of the government could drive the complete domestic market to be catered by local manufacturing and the country could bag a minimum of 8-10% of the global market share through exports by 2026, the Feedback-ICEA study said.
The Indian market for earphones and smartwatches rose to $2.8 billion in 2022 from $2.1 billion in 2021.
Implementation of PMP on wearables last year helped domestic production reach 40% of the local market in 2022 as against negligible levels in 2021.
As part of the PMP programme, custom duty on most of the components for wearables was brought down to zero in FY23 while putting in a schedule to charge duties at the rate of 5-15% between FY24 to FY26 so as to encourage local production of components as well.
For instance, duty on battery for wearables was reduced to zero in FY23 from 15% earlier. In FY24, a 5% duty will be levied on battery followed by 10% in FY25 and 15% in FY26. A similar duty structure has been proposed for other components.
By 2026, the domestic wearables market is expected to touch $4 billion but manufacturing of wearables could reach $8.2 billion, including $4.2 billion of exports.
After PMP, manufacturing growth for wearables has reached almost 400% as companies started to produce locally as against relying on imports. The manufacturing growth has led to direct employment of around 30,000 people. All major wearables brands such as Boat, Noise, and Firebolt are scaling up manufacturing in India.
The company’s monetisation strategy is to have the widest possible adoption for its games by keeping them free and partnering with global brands to help them connect with those audiences. The Graphic India founder said the company’s ambition is to help lead a new Roblox revolution in India by pulling in millions of first-time users from the country and giving them a unique experience around high-quality unique Indian characters, stories and themes.
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