Hi SDhiraj,
The local data stored from your application ( kind of %APPDATA% ) will not be overwritten by new releases.
So if you don't have any modification on the sqlite part, no worries.
Of course you have to handle the fact that, in case you have to modify existing db structures, you have to deploy the app in a way that during installation and only during that time, it will update existing structures on your customer phone.
I think there are quite some functionalities in order to do that...
let me know if this was useful for you :)