INDIA SECOND LARGEST MOBILE PHONE MANUFACTURER IN THE WORLD: RAVI SHANKAR PRASAD

In 2017, the government launched a phased manufacturing programme under which it incentives local sourcing of parts.

Under this, importing products such as chargers, microphones, camera (for phones) etc would invite custom duties but not for the parts required to manufacture them. Consequently, importing a full fledged mobile phone would be costlier than importing it's parts and assembling them in INDIA.



Although it has indeed increased local value addition in mobile phones manufacturing in India from 6 percent in 2016 to 17 percent in 2018. Local parts such as chargers, surface-mount technology, packaging, camera module etc. In general over 300 components and sub components are required to manufacture one mobile phone.

What about MADE IN INDIA ?

With the small policy, a 100 percent "MADE IN INDIA" phone would be "virtually impossible" in such a scenario. It would take years of policy reforms for anything beyond 50 percent of value addition. It took China roughly two decades to clock a value addition of over 60 percent.

The government expects the domestic value addition in mobile phones to increase to 35-40 percent by 2025. "Indian government has approved Rs 41000 core booster for mobile makers. Such packages will help India in growth of its electronic service.  "Telecom and IT minister Ravi Shankar Prasad
Previous
Next Post »