Make in India Smartphones Still A Distant Dream For Domestic Manufacturers

5 min read
Make in India

Narendra Modi-led BJP government has always favoured the idea of make in India eventually pushing and boosting it through almost each sector. Demonetisation helped the nation move one step ahead towards Digital India as mobile payments enterpriseslike Paytm, Mobikwik, Freecharge, etc lined up to promote themselves more severely than before. Keeping the mode on thus trying best to take India towards anew direction, ‘Make in India‘ smartphones or mobile handsets is still a distant dream for domestic manufacturers.

The value addition in India-based mobile handsets still remains at lower standards as compared to its global counterparts, despite the governmentis giving cent percent effort to promote Digital India as well as Make in India platforms. The boost in the economy via pushing the local manufacturers to add-up in GDP hence leveraging taxes, would not only help grow the nation, it will also position the country amongst the top most competitive markets in terms of gadgets, technology, finances and much more.

The increase in purchases in mobile handsets from 80 million in 2015 to 180 million units in 2016-17 is only the sole example of the rate of production structure in the global market. However, the local market scenario remains a matter of concern as the manufacturing line has witnessed a growth of 5.6% whereas nations consisting smaller markets than us such as Vietnam and Brazil have recorded a growth of 35% and 17%, respectively.

Make in India

In 2015, nearly 40 new units had been set up by mobile companies in India so as to avail the duty and other demands provided by the central and state government eventually adding up tax incentives and inverted duty structures on imported products have led to a depreciation of 32% in 2016-17 from 41%, last year. AS per the local manufacturing sector is concerned, the assembling of mobile handsets is imported from other nations. Right from Printed Circuit Board Assembly, housing, battery, camera, display, charger, etc. almost 90% of the total cost is imported which might be continued for 10 years down the line.

According to Parag Kar, Vice-President at Qualcomm for govt. affairs, India and South Asia, Thegovernment had earlier tried to push local manufacturing of components like FAB, such projects could not materialize due to lack of interest from investors. Given the scale of investment required and lack of demand of such products, the companies did nit come forward. Qualcomm is a major chipset maker, globally.

The assembly of entire products to make and manufacture mobile handsetsthrough local companies completely rely on imposed tax and duties levied by the government. An increase in value addition in the past two years has currentlyhelped the semi-local enterprises take over the market in global standards. However, entire knock-down of manufacturing needs to get started regarding the components putting in one place inside the case. The higher value addition may lead to higher export and reduce foreign exchange loss.

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