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From an importer to an exporter: How India became a manufacturing hub of smartphones under PM Modi

TFI Desk by TFI Desk
11 September 2021
in Economy
Make in India, Smartphones, Manufacturing, Hub, China
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  • The smartphone penetration has increased exponentially in India
  • Make in India has turned around the waves in India’s favour making India a global hub for manufacturing smartphones.
  • In 2014, there were only 2 manufacturing units in India but since the launch of ‘Made in India’ which propelled the scene impressively, the number has increased to more than 130 as of 2020.

In the last seven years, India has witnessed a revolution in the digital technology sector. The smartphone penetration has increased exponentially, data prices are among the lowest in the world, and the country has turned into a net exporter of mobile phones from being a net importer.

During the Independence Day speech, Prime Minister Modi said, “Electronic manufacturing sector is an example of the change that the scheme is bringing. Seven years ago we used to import mobile phones of approximately USD 8 billion. Now imports have reduced. Today, we are exporting mobile phones worth USD 3 billion.”

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“We have to target the global market. Your (manufacturers) product is the brand ambassador of India. Till the time it is in use, its user will proudly say this product is Made in India. This temperament is required,” he added.

In the last few years, India has overtaken the United States of America to become the 2nd largest manufacturer of smartphones in the world, trailing China, as stated by various independent analysts.

Make in India has turned around the waves in India’s favour making India a global hub for the manufacturing, which is the principal aim of the ‘Make in India’ Policy. In 2014, there were only 2 manufacturing units in India but since the launch of ‘Made in India’ which propelled the scene impressively, the number has increased to more than 130 as of 2020.

This milestone will make India a global manufacturing hub creating millions of jobs for the Indian people. Samsung owns the biggest market share in terms of mobile manufacturing and it has opened its largest manufacturing facility in the outskirts of the national capital region with the surging demand for smartphones in India.

The idea of the Make in India programme is to transform India into a global hub of manufacturing where the units are to be set up by global and domestic companies. Make in India, coupled with Atma Nirbhar Bharat Abhiyan under which Production Linked Incentive (PLI) scheme has been launched, will help India to emerge as a global manufacturing hub.

The aim is to increase the employment possibilities in the manufacturing sector to 25 per cent by the year 2025 from the current 16 per cent. The manufacturing investment in the last few years has raised the hopes of India to become a global manufacturing hub and create millions of jobs for the people of the country.

Moreover, India is providing more market space to the domestic players by making the environment tougher for foreign players, especially for the Chinese ones. The ban placed on Chinese apps one and a half years ago has boosted the presence of Indian players in the market, as per a report by South China Morning Post.

“According to a China Internet Report 2021 (by South China Morning Post), the market share of Chinese apps in India has dropped substantially from 44 per cent in 2018 to only 29 per cent in 2020. In 2017 it was 41 per cent,” reported Business Standard.

India has a very strong ecosystem for the software front but the hardware industry is still in a nascent stage. As per National Policy on Electronics-2018, electronics manufacturing clusters will be promoted by the government and will help the country to grow on the hardware front. 

Once the presence in the hardware front like semiconductors, mobile phones becomes strong, the software presence and hardware presence could be integrated to develop a whole new range of products for the country and exports. Once we have the capability in software as well as hardware, an ecosystem of integration will generate, driven by innovation the entire consumer electronics industry will flourish.

Tags: Atma Nirbhar Bharat AbhiyanChinaChinese App BanIndiaMake In IndiaPLISmart Phones
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  1. Chand says:
    4 years ago

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