Mobile phone industry considers government's new manufacturing schemes as 'game changer'
By MYBRANDBOOK
The mobile phone industry views the announcement of manufacturing incentives to companies as a ‘game changer’. This is in line to make India a global handset manufacturing hub and also resurrect domestic players and give way to new entrants.
“This scheme is a game changer for the nation and the industry - a historic development under the leadership of Prime Minister Modi to advance the “Make in India (MII)” program”, said Pankaj Mohindroo, Chairman, Indian Cellular and Electronics Association. .
The handset brand’s industry body which comprises brands like Apple, Xiaomi, Oppo, Vivo, Lava, and contract manufacturers like Foxconn and Wistron, said that by 2027-28, it aims to achieve USD 1 Trillion electronics hardware manufacturing target.
Arijit Sen, Director at US contract manufacturer Flex, welcoming the government’s initiative said that the industry must identify the low-hanging fruits which can be brought to India in the immediate term.
“The three areas in the ESDM sector which can be brought to India in two years time are-PCBAs (Printed Circuit Board Assembly), display and the energy source (or battery packs),” said Sen in a webinar.
Flex India operates three factories in India and manufactures smartphones for brands like Xiaomi, Motorola and Lenovo.
“We also need to revisit some FTAs (free trade agreements) which allow zero duty export to India. For example, due to the Indo-ASEAN FTA many countries are routing their products to India via vietnam,” Sen added.
Union Minister Ravi Shankar Prasad unveiled the guidelines for electronics manufacturing schemes to strengthen domestic manufacturing of five global and five Indian mobile phone makers.
The three Schemes are the Production-Linked Incentive Scheme (PLI), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme, which were notified by the Ministry of Electronics and IT (MietY) on April 1, have a total outlay of Rs 50,000 crore.
Dixon, the home-bred manufacturer is thoroughly going through the guidelines of the scheme and will soon apply for it.
“We believe many Indian champions will be born out of this push by the government not only for catering to domestic demand but also supplying to global markets,” said Sunil Vachani, CMD, Dixon Technologies which manufactures feature phones for Samsung and smart TVs for Xiaomi.
“We hope Dixon is at the forefront to make India a global manufacturing hub,” he added.
The home grown brand Lava said that differentiated PLI for Indian companies shows the true commitment of the government towards Atma Nirbhar Bharat.
“It would enable us to acquire skills and technologies for global competitiveness. It is the right step towards long term financial and technological independence of the country,” Lava Chairman Hari Om Rai said.
Wistron said that the scheme is a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain.
“We thank India government for such incentive launch and appreciate for the great effort. Wistron is looking forward to further expanding our customer base in India,” David Shen, CEO, Wistron India said in a press statement.
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