Can India become a mobile handset manufacturing hub?

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Can India become a mobile handset manufacturing h

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India aims to become a leading mobile handset manufacturing hub by 2025.
Thus, the focus on electronics manufacturing by the Digital India mission presents a pronounced opportunity for the languishing sector especially at a time when India’s GDP growth has been sliding.
India ignored electronics manufacturing for almost a decade.
But there was no focus within India to manufacture smartphones.
Until 2014 there were only two mobile handset manufacturing units in the country.
According to a PriceWaterhouseCoopers study, India’s domestic value addition in manufacturing for mobile handsets is 7 percent.
India needs to manufacture the more expensive electronics components domestically.
Under the Digital India Mission, the country has set a target of producing mobile handsets worth $190 billion.
While the policy offers various incentives to the mobile handset manufacturing units, it cannot be successful until the core issues plaguing the Indian manufacturing sector are addressed.
In 2019, electronics giant Samsung expanded its Indian plant to set up the company’s biggest mobile-phone manufacturing site globally.
In less than a year the company informed the government that it cannot end-to-end manufacture handsets in India.
Importing just these two components effectively makes the Samsung’s India factory more of an assembly unit versus a true mobile handset manufacturing unit.
Like Samsung, Chinese firm Xiaomi also claims to manufacture handsets in India.
India boasts of 268 mobile handset and accessories manufacturing units.
Such manufacturing does not solve India’s problem since it continues to import the more expensive parts.
The issues with electronics manufacturing in India are linked to the broader sectoral issues.
India’s manufacturing sector is marred by structural challenges which add 10-12 percent to the costs

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