India Emerges as Second Largest Mobile Manufacturing Hub
India has reached a significant milestone in becoming the second-largest mobile manufacturing hub globally, leaving behind its dependence on imports. The country’s progress in this sector has been acknowledged by former IAS officer Er. Ashwini Vaishnav, the Minister of Electronics and Information Technology. This development comes as a result of the government’s recently launched Production Linked Incentive (PLI) scheme, which aims to promote domestic manufacturing in the post-Covid era.
The PLI scheme, with a budget of ₹41,000 crores, has attracted proposals from both domestic and foreign companies, including industry giants like Foxconn, Samsung, and Apple’s contract manufacturers. Many companies are seeking to shift their manufacturing operations from China. Under the scheme, these companies can produce mobile phones with a cost of ₹15,000 or above. Indian companies, on the other hand, do not have a cost limit imposed on them. As a result of the PLI scheme, approximately 1.2 million people in India are expected to be employed in the mobile manufacturing sector over the next five years.
The outcomes of the PLI scheme are already evident. India’s mobile manufacturing currently stands at a staggering ₹4 lakh crores. Even renowned companies like Apple have begun manufacturing their latest iPhones in India. Samsung’s Giga factory has also achieved record production levels. The country, once heavily reliant on imports, now proudly claims the title of the world’s second-best mobile manufacturing hub.
Indian-made iPhones have made a strong impact in the export market, with revenues touching ₹23,000 crores, accounting for half of the country’s total exports thus far. It is projected that by the end of the fiscal year 2022-2023, total export earnings will reach ₹1 lakh crore. The success story doesn’t end with mobile phones; the ban on imports of laptops, computers, and tablets has opened up opportunities for domestic production in these sectors as well.
Two years ago, a PLI scheme was introduced to promote domestic manufacturing in the laptop, computer, and tablet sectors. The results of this initiative are now beginning to surface. With import restrictions in place, it is anticipated that local production in these sectors will flourish. Hopefully, this time Rahul Gandhi, the leader of the Congress party, will not remain unaware of the impressive performance achieved in these emerging sectors.
India’s emergence as a major mobile manufacturing hub not only uplifts the economy but also generates employment opportunities for millions of people. The government’s focus on promoting domestic manufacturing will further bolster India’s position as a global leader in the technology sector. As the country continues to make strides, it is crucial for politicians and leaders to stay informed and support initiatives that drive its growth.
