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India’s Groundbreaking Opportunity To Become Phone Export Hub

“Make in India” To “Make in India For World” Groundbreaking Opportunity to become Phone Export Hub

India is now all set to become a global mobile manufacturing market overtaking China and Vietnam as the global giants look at de-risking manufacturing from China.

After the huge success of the initiative set by Narendra Modi’s Government of “Make in India”, Ministry of Electronics and Information Association is further focusing on the “Make in India for World” scheme.

According to the new report on Thursday, India can achieve $100 billion in mobile phones and nearly $40 billion in component exports 2025.

ICEA Chairman Pankaj Mahidroo said “The recently announced trilogy of schemes — PLI, SPECS and EMC 2.0 — have laid the foundation for starting something big. The impact of the PLI scheme will be visible before the end of 2020-21,“.

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To make India a top global mobile manufacturer Indian Council of Electronics and information Association (ICEA) has developed a roadmap for India that aims to utilize the latest schemes announced by the government of India

The schemes announced by the government of India favorable for Phone Exports are:

1. Production Linked Incentive Scheme (PLI) for Large Scale Electronics Phone Manufacturing

The domestic electronics hardware manufacturing sector faces a lack of a level playing field vis-à-vis competing nations. The sector suffers a disability of around 8.5% to 11% on account of lack of adequate infrastructure, domestic supply chain and logistics; high cost of finance; inadequate availability of quality power; limited design capabilities and focus on R&D by the industry; and inadequacies in skill development.

2. Scheme for Promotion of Manufacturing of Electronic    Components and Semiconductors (SPECS)

The development of the supply chain is essential for the manufacturing of electronic products with higher domestic value addition. The vision of National Policy on Electronics 2019 (NPE 2019) is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally manufacturing in India and essential to achieve net positive Balance of Payments (BoP).

3. Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme

To offset the disabilities faced by industries for quality infrastructure and to develop a robust electronics manufacturing ecosystem in the country to make India an Electronics Manufacturing Hub; Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme has been notified vide Gazette Notification No.CG-DL-E-01042020-218991 dated April 01, 2020, with the objective to address the disabilities, by providing support for the creation of world-class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers along with their supply chain to set up units in the country.

 ICEA focuses to bring global value chains to India, establishing Indian champions, and replacing Vietnam in the global mobile manufacturing market that is currently dominated by China and Vietnam. As among almost 198 countries who import mobile phones, only two countries were the major exporters – China and Vietnam.

“The mobile manufacturing and components sector is ready to lead India’s post-COVID-19 exit strategy. Production has restarted. We hope to hit 100% production by August. As the PLI scheme kicks in, we plan to ramp up global exports from India. There isn’t a moment left to waste”, the ICEA chairman added.

“Today, India stands at the cusp of a great opportunity to ignite the mobile phone manufacturing, bring global value chain investors in India, and become leading exporters of mobile phones in the world,” EY India Indirect Tax Partner Telecom sector Bipin Sapra said.

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