India has emerged as a formidable player in the global mobile manufacturing landscape in recent years, with ambitious plans to position itself as the next manufacturing hub for mobile devices. As the world’s second-largest smartphone market, the country is strategically placed to attract top mobile manufacturing companies and reshape global mobile manufacturing dynamics.
The Mobile Manufacturing Boom in India
India is the second-largest mobile phone producer in the world and the world’s fastest-growing market for mobiles and mobile applications. There are about 750 million smartphone users, and this number is expected to hit 1.5 bn by 2040. What’s more, India is set to become the second-largest smartphone manufacturer in the next five years. The export value of mobile handsets increased from approx. $25 million in FY2014-15 to a whopping $4.4 billion in FY2021-22, and further doubled to over $8.5 billion during FY2022-23.
India’s mobile manufacturing journey gained momentum with the ‘Make in India’ initiative promoting domestic manufacturing across sectors, including electronics. This initiative, along with other strategic measures, has paved the way for the nation to become a preferred destination for mobile manufacturing.
1. Samsung: Global tech giant Samsung has significantly invested in India’s manufacturing sector. With the inauguration of its world’s largest mobile factory in Noida, the company has demonstrated its commitment to the domestic market and solidified India’s position on the global mobile manufacturing map.
2. Apple: Apple has gradually increased its presence in India under the’ Make in India’ initiative. The conglomerate has been exploring local manufacturing partnerships to boost the production of iPhones on Indian soil. This move not only supports the Indian economy but also aligns with Apple’s global supply chain diversification strategy to maintain its position as an industry leader
3. Xiaomi: Often referred to as the’ Apple of China’, Xiaomi has been a frontrunner in the Indian smartphone market. Recognising India’s potential, the multinational has established manufacturing facilities, producing a significant portion of its devices locally. This reduces production costs and ensures a steady supply to meet the growing demand.
4. OnePlus: OnePlus is known for its premium smartphones.
The brand has joined the ranks of companies investing in the Indian manufacturing ecosystem. With a commitment to producing flagship devices locally, OnePlus has tapped into India’s skilled labour force and infrastructural capabilities
India’s Rise as a Mobile Manufacturing Hub
With the influx of top mobile manufacturing companies and India’s ambitious ‘Make in India’ initiative, the global mobile manufacturing landscape is undergoing a paradigm shift. A growing consumer base, skilled labour force, and supportive government policies have made India the next mobile manufacturing powerhouse. The nation now challenges established players by significantly contributing to the global supply chain. As the mobile industry evolves, all eyes are on India, a country poised to change the dynamics of mobile manufacturing in the coming years.
Creating an Ecosystem for Semiconductor Manufacturing
The demand for semiconductors has risen in recent years, owing to factors such as the widespread adoption of 5G technology, the growing popularity of cryptocurrency mining, which necessitates a greater number of processing units, and the government’s ongoing efforts toward digitalisation.
The Indian semiconductor market was valued at approximately $23.2 billion in 2017 and is expected to reach $80.3 billion by 2028, registering an annual growth rate of 17% during the forecast period. With a population of over 1.4 billion people and a robust education system, India has the potential to become a talent powerhouse in the semiconductor industry, helping to alleviate the acute shortage of skilled professionals.
Furthermore, the Ministry of Electronics and IT (MeitY) has announced a $10 billion investment in the India Semiconductor Mission (ISM) to support semiconductor R&D in India, demonstrating the government’s intention to establish a foothold in the global market. The investment includes capital, manufacturing incentives, and the Production-linked Incentive (PLI) scheme, which aims to assist Fabless startups in developing products for both domestic and global markets.
Conclusion
India’s rise as a global mobile manufacturing hub is remarkable, backed by the ‘Make in India’ initiative and other strategic measures that position it as a preferred destination for electronics production. As the second-largest smartphone market globally, India is reshaping mobile manufacturing dynamics, attracting top companies, and contributing significantly to the global supply chain. Simultaneously, the surging demand for semiconductors aligns with the country’s potential to become a talent powerhouse in the sector. This collective momentum propels India into a central role in the ongoing technological revolution.
For an in-depth understanding, join us to engage with industry stalwarts at the 31st Convergence India & 9th Smart Cities India exhibition and conferences, scheduled from 17-19 January 2024 at Pragati Maidan, New Delhi. Esteemed speakers, such as Mr Abhijeet Agarwal (IAS), MD of Madhya Pradesh State Electronics Development Corporation (MPSeDC), Mr Brian Bade, CEO of Reliance Retail, Mr Sanjeev Kumar, CMD of Telecommunications Consultants India Ltd (TCIL), and Dr Rishi Mohan Bhatnagar, President of Lava International, will share insights and visions on India’s ascent as a hub for innovation and manufacturing in the mobile technology sector during panel discussions.
