With the rapid evolution of technology, mobile phones are among the most sought-after and commonly used gadgets across the globe. India, with a massive population of over 1.3 billion people, is emerging as a leading destination for the manufacturing and export of mobile phones. In this article, we will explore why India is gaining popularity as a mobile phone export hub, and what makes it a lucrative destination.
Manufacturing facilities in India have attracted substantial global investment, making it one of the largest mobile phone manufacturing countries in the world. In the last decade, India has been positioning itself as a manufacturing destination for global companies, including Apple and Samsung, to take advantage of the country’s skilled workforce and lower manufacturing costs. According to the India Cellular and Electronics Association (ICEA), mobile phone exports from India increased by 115% to USD 3.1 billion in 2020.
With an ambitious goal of manufacturing 1 billion mobile phones in India annually, India is also creating an environment that enables mobile phone manufacturing. The Indian government-initiated Make in India program is designed to promote and support manufacturing in India through foreign direct investments (FDI), incentives, and other initiatives. The program has created a more friendly business environment for international players, resulting in a significant increase in FDI.
One significant advantage of manufacturing mobile phones in India is the availability of a large and skilled workforce. India’s young population is rapidly increasing, and with it, a rising demand for employment opportunities. The mobile phone industry alone has created huge job opportunities for skilled and unskilled laborers. Moreover, India has established itself as a leading provider of low-cost yet highly skilled labor.
In addition to a skilled workforce, India’s mobile phone manufacturing sector has access to a vast ecosystem of component manufacturers, including displays, microprocessors, batteries, and other critical parts. India is gradually becoming self-reliant and strengthening its supply chains, reducing dependence on imported components from other countries.
The Indian government has also introduced various schemes and incentives to support mobile phone manufacturing, making it easier for companies to establish a presence in India. The Modified Special Incentive Package Scheme (M-SIPS) provides financial incentives for investment and other benefits such as reduced taxation and import duties. The Production-Linked Incentive Scheme (PLI) aims to create a more competitive environment in the mobile phone manufacturing industry, thus manufacturing high-quality electronic goods, increasing exports, and creating employment opportunities.
In conclusion, India’s mobile phone manufacturing industry is rapidly evolving to become a preferred destination for foreign investment. The government’s initiatives to support and promote mobile phone manufacturing in India, coupled with a skilled workforce and an established supply chain, make it an attractive destination for international companies. With a robust infrastructure and conducive ecosystem, India is well positioned to emerge as a leader in the mobile phone manufacturing sector.
