India threatens China’s dominance in phones
Her plans for the future
India is emerging as an emerging country in phone manufacturing. In 2022, 60% of phones sold in India were made in China, but this percentage is steadily falling, with Indian companies starting to gain market share.
Micromax Informatics is one such example. It entered the mobile phone market in 2008 and in just 2 years became the largest manufacturer of feature phones. However, competition with Chinese companies is difficult, as by selling 10 times more phones they have a cost advantage. In addition, Chinese companies can source all components locally. Indian women can make chargers, cables and batteries, but almost all modern electronics come from abroad.
As for the build, it’s just the beginning. We must have our own “kitchen”, where we will produce all the components locally. The ultimate goal is to transition from being a producer for the local market to serving global demand, not just for phones but for laptops, tablets and other devices.
India’s government wants to speed up this transition by subsidizing phone parts made in India, hoping to incentivize companies. According to government data about 15-20% of phone components sold in India today are made in India and the goal is to increase that to 35-40% immediately.
Manufacturing incentives are a game changer in electronics manufacturing. India is one of the fastest growing countries in the world in the field of mobile phone manufacturing and has become the second largest manufacturer in the world, surpassing the US.
It is worth mentioning that mobile phones are India’s largest electronics export sector and in 2023 they are expected to make up 50% of electronics exports.
India will become the next hub for mobile phone manufacturers. China, as it gets richer and sees wages rise, has lost its cost advantage over other countries. – Hari Om Rai, Chairman of phone maker Lava International
