Saturday, November 28, 2020
Home News Reports India's rise as the Mobile manufacturing hub of the world

India’s rise as the Mobile manufacturing hub of the world

Recently, in July 2018, Samsung inaugurated the world’s largest mobile phone factory in Noida, India, which will roll out 120 million units per year. Samsung plans to use India not only for manufacturing and local selling but also as an export hub for India-made handsets. “We ‘Make in India’, ‘Make for India’ and now we will ‘Make for the World’, H C Hong, Chief Executive Officer at Samsung India said in his statement.

It must be noted that Samsung is just one cog in the large wheel of Mobile phones manufacturing industry in India which has developed at a mind-boggling pace within the last three years. A Business World report titled “Is India The New Mobile Manufacturing hub” reports the following promising developments –

  • India has attracted investment from 37 mobile manufacturing companies in the last one year
  • Many large global mobile phone manufacturers including American giant Apple and Chinese players Gionee, Xiaomi, Vivo, Oppo have set up large-scale manufacturing in India
  • Local Indian players are rapidly expanding manufacturing too. Micromax started a new plant in Uttarakhand and is planning investments in Telangana, Rajasthan and Maharashtra. Another Indian company LAVA built a facility in Noida and is planning a second unit shortly. Other Indian manufacturers like Celkon Mobiles, Spice Mobility and Karbonn are also adding new capacities
  • Mobile production in India crossed 100-million units and may cross 500 million in the next two years
  • In 2017, India became the world’s second largest mobile phone producer after the proportion of global handsets produced in India increased from 3% in 2014 to 11% in 2017
  • World’s biggest contract manufacturer of mobile phones, Foxconn is planning to build additional seven to eight new units in India

Foxconn’s competitor and Apple’s largest contract manufacturer Wistron is also investing INR 3000 crores (US$ 450 million) for setting up a manufacturing unit in Karnataka which will produce 100 million units every year and will generate thousands of jobs.

Source: Business World and Financial Express

 

Manufacturing vs Assembling

Admittedly, a large part of current mobile phone manufacturing in India includes only “assembling” of components imported from other countries. However, most manufacturing industries start similarly, while local component manufacturing develops subsequently.

A similar trend was witnessed in India’s automotive industry. In 1983, Maruti started operations with CKD (completely-knocked-down) kits of imported components. Over the years, localized production of components increased significantly, as part of the phased manufacturing process. Today, there are close to 250 Indian and Japanese component-makers operating in India. This enabled the Indian auto-components business to rise to global expectations and created vibrant clusters of auto component makers in Gurugram, Pune, Indore and Chennai.

Mobile manufacturing industry in China had followed the same cycle. When Foxconn established a massive presence in Zhengzhou, an entire vertical mobile phone supply chain developed in the region.

Similar green-shoots are now being witnessed in Indian mobile phones industry too. Vedanta has planned to start manufacturing LCD screens to be used in phones and other electronics. MediaTek, the chipsets‘ manufacturer has also started operations in India. As mobile phone manufacturing continues growing in India, more and more related businesses and component manufacturers are expected to spring up around phone manufacturing hubs.

Source: Economic Times, news18 and iTers News

To promote Prime Minister Modi’s “Make in India” project, the Indian government has incentivized local production through a variety of policies, including raising import duties on critical parts which makes direct investment in India more financially compelling to manufacturers. Consequently, more and more indigenous development is expected to replace the import of components.

For instance, in 2016-17, electronics worth $50 billion were manufactured in India compared to $43 billion in Imports. For the first time ever, local manufacturing in electronics exceeded imports. With the Electronics manufacturing corridor coming up in U.P., local manufacturing of electronic components is further expected to increase substantially.

Source: International Business Times and Financial Express

Way forward

Today, almost every big and small mobile company in the world is competing for not only selling in India but also manufacturing in India.

The FTTF (fast track task force), a government body under Ministry of Electronics and IT, has set a target to achieve around 500 million mobile phone production in India by 2019, with an estimated value of around US$ 46 billion. FTTF, with members from industry and government, has also set the target to create US$ 8 billion component manufacturing as result of growth in mobile phone production and create 1.5 million direct and indirect jobs by 2019. It’s an attractive opportunity which rings a sign of good times for global and Indian mobile phone manufacturers, consumers as well as for technology job seekers.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

Shashank Goyal
IIM-A alumnus, Software Sales Professional, Writes about business, economy and politics; Passionate about numbers, facts and analysis Tweets @shashankgoyal01

Related Articles

Trending now

Indo-Canadian politician Gurratan Singh, brother of Khalistani supporter Jagmeet Singh, scare-mongers about farm bills

In a shoddy attempt to internationalise India's internal matter, an Indo-Canadian politician, Gurratan Singh, raked up the ongoing 'farmers' protest in Canada

Who is the man in farmer protest video, lying about ‘govt snatching farmland’: Profile of an actor and Khalistan supporter

Khalistan supporter Punjabi actor Deep Sidhu has been seen spreading the lie that govt will snatch farmer's land using the new farm laws

Door-to-door campaign luring Sikhs, grant of $1 million to protesting farmers, pro-Khalistan slogans now: SFJ tentacles analysed

The farmer protest started in September, and in that month itself, Khalistan org SFJ had started spreading its tentacles

Prannoy Roy, Radhika Roy, Vikram Chandra, others barred from capital market for insider trading of NDTV shares: Read details

NDTV Promoters & senior executives had done insider trading by trading in NDTV shares while holding unpublished price sensitive information

Financial assistance for marriage, free cars, development of mosques and dargahs: Telangana spends Rs 5,600 cr in 6 yrs on ‘minorities’

Telangana government in the state has so far spent a whopping Rs 5,639.44 crore in the last 6 years for sake of minority appeasement

The truth about the viral picture, shared by Rahul Gandhi, where police can be seen ‘beating up’ an old farmer

Congress leaders share cunningly edited version of a video to allege brute force is being used by security officials to quell the 'farmer' protest

Recently Popular

Odisha: Largest ever vigilance raid in state unearths massive wealth gathered by IFS officer, fancy cars, ultra-luxurious lifestyle

Pathak's family reportedly owns a lavish apartment in Bhubaneswar with Italian marble flooring, ivory furnitures and other luxuries. The son is engaged to an MLA's daughter.

‘Indira thok di…Modi ki chhati mein’, ‘Imran Khan dost’: Congress plays a dangerous game as ‘farmer’ protest turns into show of strength for Khalistanis

Farmer protest along Punjab-Haryana border have seen participation from Khalistanis, even as Congress lends support to them

Who is the man in farmer protest video, lying about ‘govt snatching farmland’: Profile of an actor and Khalistan supporter

Khalistan supporter Punjabi actor Deep Sidhu has been seen spreading the lie that govt will snatch farmer's land using the new farm laws

Netizens call to Boycott tax evasion accused Amrapali Jewels after it pitches Swara Bhasker as its brand ambassador, Amrapali deletes tweet

The official Twitter account of Amrapali Jewels had posted a tweet with a picture of actor Swara Bhasker endorsing its products

Abetment to suicide charge not established in FIR: Massive victory for Arnab Goswami as SC delivers scathing statements

A bench of Justices DY Chandrachud and Indira Banerjee stated that the FIR by Maharashtra government does not establish the charges of abetment of suicide against Arnab Goswami.

The truth about the viral picture, shared by Rahul Gandhi, where police can be seen ‘beating up’ an old farmer

Congress leaders share cunningly edited version of a video to allege brute force is being used by security officials to quell the 'farmer' protest

Wife of late Wajid Khan writes on her sufferings in an inter-faith marriage, says anti-conversion law should be nationalised

Wife of late music composer Wajid Khan wrote how her husband and his family had been forcing her to convert to Islam after their marriage

Chhattisgarh: Five including two women arrested after woman abducted, raped, and sold to multiple buyers in Delhi and Haryana

The woman was offered a drink laced with sedatives before her abduction and trafficking to Delhi and Haryana

After Hindu refugees booed anti-CAA ‘activist’ Medha Patkar, she joins farmer protests in Punjab for legitimacy

Medha Patkar claimed that the farmers agitation was in fact against the 'divide' between the corporates and the toiling masses

Odisha: IFS officer Abhay Pathak who had taken 20 chartered flights during lockdown arrested in disproportionate asset case, suspended

During the raid at house of Abhay Pathak, the Vigilance department had found evidence of cash deposits of Rs 9.4 crore in bank accounts

Terror in the name of God: Are Islamic terrorists ‘cowards’, or are we cowards for not analysing Islam honestly?

The biggest problem in today’s world is terrorism, many political leaders acknowledge, however, they do water down the conversation around it

After Khalistanis, radical Islamic organisation Popular Front of India extends their support to ‘farmer protest’ against ‘fascist law’

PFI has extended its support to the farmer protest, opposing the passing of three farm laws by the Modi government

GHMC polls: After verbal duel over Narsimha Rao, Akbaruddin Owaisi and Telangana BJP president booked

Akbaruddin Owaisi had called for the removal of PV Narsimha Rao and NTR ghat after which BJP state president warned action against AIMIM office in Darusalam

Hawala network worth Rs 1000 crore operated by China unearthed by the Ministry of Home Affairs

Spy agents of China were receiving assistance from deep-rooted Pakistani spy ring to establish their networks in India.

Indo-Canadian politician Gurratan Singh, brother of Khalistani supporter Jagmeet Singh, scare-mongers about farm bills

In a shoddy attempt to internationalise India's internal matter, an Indo-Canadian politician, Gurratan Singh, raked up the ongoing 'farmers' protest in Canada

‘We are majority here, not minority, because Dalits and Adivasis are not Hindus’: claims AIMIM’s West Bengal ally Peerzada Abbas Siddiqui

Peerzada Abbas Siddiqui had earlier demanded a virus from Allah that could kill 50 crore people in India in one go.

Connect with us

245,563FansLike
490,060FollowersFollow
20,200SubscribersSubscribe