MUMBAI, India (CU)_ The use of smartphones in India is growing at a rapid rate. According to a Deloitte estimate, the country is on track to have 1 billion smartphone users by the year 2026 and will become the second major smartphone producer within the following five years. Accordingly, this increase is projected to be driven by rural regions, which are anticipated to expand at a rate of 6% from 2021 to 2026, compared to the urban sector, which is projected to grow at a CAGR of 2.5%.
The introduction of 5G was considered to be the key driver for this increasing demand. 5G alone is expected to account for 80% of devices or over 310 million units by 2026. According to the analysis by Deloitte, 5G will be the most rapidly adopted mobile technology owing to its numerous uses, including high-speed gaming and remote healthcare. After the debut of 5G, additional smartphone shipments are anticipated to reach a total of 135 million by 2026. According to the report, “Higher internet adoption is expected to fuel demand for smartphones; this increased demand will be propelled by the need to adopt fintech, e-health, and e-learning”.
In 2021, India had 1.2 billion mobile customers, of whom around 750 million were smartphone users. The country’s replacement rate for mobile phones is also anticipated to increase. Deloitte predicts that by 2026, 95 percent of replacements in the urban market would be for new smartphones, while just 5 percent will be for used phones, compared to the 2021 results of 75 percent and 25 percent, respectively. The rural community is also anticipated to exhibit a similar pattern in 2026, with around 80 percent of replacements done for new phones and 20% for old ones.
Investors who are focused on the fifth largest economy in the world may choose to explore the India Internet and Ecommerce ETF offered by EMQQ Global. INQQ, which was created with the intention of capitalizing on the rapidly expanding digital and e-commerce industries of India, aims to deliver investment results that, prior to fees and expenditures, correspond roughly to the price and yield performance of the India Internet and Ecommerce Index.
In a press statement announcing the introduction of INQQ, EMQQ Global founder and chief information officer Kevin T. Carter said: “India is an extraordinary investment opportunity and a central part of the eCommerce and digitalization growth story in emerging and frontier markets beyond China”. He added: “India is the third-largest economy and fastest-growing major economy on the globe, and we’re excited to offer investors the first targeted approach to tap into this rapid eCommerce and digitalization story of India.” The expenditure ratio of INQQ is 0.86%.
