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Now India has a realistic chance of beating China in the mobile handset game

Paurush Gupta by Paurush Gupta
18 September 2022
in Analysis, Economy
Now India has a realistic chance of beating China in the mobile handset game
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Most of the nations follow a three-sector economic model. In this, they try to shift their economic model from the primary sector to the tertiary sector through a gradual development of the secondary sector. However, India registered a quantum jump directly from the primary to the tertiary sector.

Although, the Indian economy grew at a decent pace, unfortunately, the similar growth rate was not witnessed in the job creation. Notably, employment generation is largely driven by the manufacturing sector.

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Thankfully, the game changing Production Linked Incentive (PLI) Scheme as well as ‘Make in India’ programme is fast bridging this crucial gap. In the manufacturing of electronic devices alone, India is attracting all the major established market players along with the boosting indigenous Electronic manufacturing brands.

‘Made in India’ Smartphone exports register double-digit growth

The latest figures of the smartphone export vindicate the thumping success of PM Narendra Modi’s flagship PLI scheme and ‘Make in India’ programme. Reportedly, Indian manufacturers have shipped more than 4.4 crore ‘Made in India’ smartphones in the first quarter of Financial Year 2022-2023 (Q1 FY23).

It grew at 16% on Year-on-year (YoY) basis. Experts claim that manufacturers have increased their production output to meet the criteria for the PLI Scheme.

Mobile manufacturing Brand Percentage of ‘Made in India’ smartphone shipped
 OPPO 23.9%
Samsung 21.8%
Vivo14%
Bharat FIH (Manufacturer for Xiaomi)9.8%
Dixon8.1%
Other manufacturers22.4%

Also Read: Smartphone boom has beaten India’s previous year export record by 30%

Currently, India is witnessing a rampant rise of investments in the manufacturing sector. New plants are being set up while existing ones are expanded to secure more benefits under the PLI Scheme.

The report noted that the in-house manufacturers have exported 66% of the total smartphone produced while the rest was done by third-party Electronic Manufacturing Services (EMS).

Among the third-party EMS players, Bharat FIH (Manufacturer for Xiaomi) led the ‘Made in India’ smartphone export. Manufacturing players like Padget Electronics (396%), Wistron (137%) and Lava (110%) were the fastest growing manufacturers during the same time which registered a massive triple-digit growth rate.

Also Read: Modi Government goes hammer and tongs after Chinese smartphone companies

Indigenous brand Lava led the ‘Made in India’ feature smartphone segment. It registered 21% of total exports in Q1 FY23. It was also the biggest Indian smartphone player in terms of shipment in the same period. Similarly, Optiemus (75%) led the ‘Made in India’ smartwatches segment. VVDN and Mivi accounted for 90% of ‘Made in India’ shipment of neckband headphones. Wingtech, Samsung and Dixon led the exports in the ‘Made in India’ tablet segment.

Major global players rushing to invest in India

As per media reports, the Union government may start disbursing PLI benefits around Q2 of FY23 which will further amplify the growth trajectory. Recently, tech giant Apple has announced its plan of manufacturing iPhone 14 from October at Foxconn’s factory near Chennai. Reportedly, Google is also planning to manufacture the Pixel smartphone in India.

Also Read: India’s IT ministry wants Indian smartphones to grow but not at the expense of Chinese pocket bombs

In July, Chinese brand Oppo announced the Vihaan initiative to invest $60 Million in India within the next five years. Samsung is also mulling to manufacture its premium smartphones. The Indian smartphone market is expected to grow at an annual growth rate of 10.5%. In 2021, it stood at $139 Billion.

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

Recently, Vedanta announced an investment of Rs 1.54 lakh crore for establishing the Semiconductor Units in Gujarat. It has entered into a joint venture with Taiwanese giant Foxconn to manufacture display and semiconductor units within India.

The Union government received offers worth Rs 1.53 lakh crores to set up semiconductor and display plants after its announcement of PLI scheme for Semiconductors. In this way, India is building the resilient supply chains for manufacturing smartphone and electronic devices in India from scratch and without having to depend on any foreign player in the long run.

The PLI scheme and Made in India within a very short period has demonstrated India’s might in the manufacturing sector which is only on a rise. If India sustains this growth rate and rolls out progressive schemes like PLI, it will beat the Chinese in their strong turf of mobile manufacturing.

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Tags: Made in IndiaModi governmentOppoPLI schemeSamsungsmartphone
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