New Delhi [<keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>], May 30 (ANI): India and <keyword id="19952305" type="General" weightage="20" keywordseo="Southeast-Asia" source="keywords">Southeast Asia</keyword> are emerging as top <keyword id="20691393" type="General" weightage="20" keywordseo="manufacturing-hubs" source="keywords">manufacturing hubs</keyword> beyond China, driven by <keyword id="21869995" type="General" weightage="20" keywordseo="supply-chain-diversification" source="keywords">supply chain diversification</keyword>, says a report by JLL, a commercial real estate and investment management company. The report highlights that various strategic policies and economic factors are making these regions increasingly attractive to global manufacturers. It further added that one of the primary drivers for India's growing appeal is the government's initiatives such as the Production Linked Incentive (PLI) scheme and the National Logistics Policy. These initiatives by the government are designed to incentivise manufacturing investments and improve the overall logistics framework in the country. As a result, India has witnessed a significant surge in Foreign Direct Investment (FDI). The report highlights that due to initiatives like <keyword id="20018809" type="General" weightage="20" keywordseo="Make-in-India" source="keywords">Make in India</keyword>, the FDI in the manufacturing sector has surged 55 per cent to USD 148.9 billion during 2014-2023, compared to USD 96 billion between 2005-2014. "The Make in India initiative, Industrial Corridor Development Program, Production Linked Incentives (PLI), India Semiconductor Mission &amp; National Logistics Policy are a few policies and initiatives that had helped propel the India story globally today," said Chandranath Dey, Head. Logistics &amp; Industrial, India, JLL. He further added, "Manufacturing companies are exploring innovative transaction structures to complement their timeline targets and funding strategies in India". The global trend of companies relocating manufacturing operations outside China, known as the China+1 strategy, is also playing a crucial role. This strategy involves diversifying manufacturing bases to reduce dependency on China. India and Southeast Asia are the primary beneficiaries of this shift, attracting substantial investments from companies looking to establish or expand their manufacturing footprints. The report also highlights several factors contributing to this relocation trend. It says rising labour and production costs in China are prompting companies to seek more cost-effective alternatives. India and Southeast Asia offer competitive advantages, including a skilled labour force, improving infrastructure, and relative political stability. These elements are crucial for companies aiming to maintain efficient and reliable manufacturing operations. However, JLL emphasises the importance of evaluating qualitative factors in India to ensure long-term success in manufacturing investments. These factors include the quality of infrastructure, regulatory environment, ease of doing business, and the availability of skilled labour. Addressing these aspects can significantly enhance the attractiveness of India as a manufacturing hub. The other countries in South East Asia, with its strategic location, also emerging as suitable for manufacturers. Countries in the region are making concerted efforts to improve their industrial infrastructure and streamline regulatory processes to attract more foreign investments. The JLL report highlights that India and Southeast Asia are poised to become leading manufacturing hubs due to a combination of favourable government policies, economic diversification strategies, and inherent regional advantages. Companies looking to diversify their manufacturing bases would benefit from closely examining the opportunities and challenges in these regions to make informed investment decisions.

India emerging as a top manufacturing hub, driven by supply chain diversification: JLL

<keyword id="8605129" type="General" weightage="20" keywordseo="Electronics-export" source="Orion">Electronics export</keyword> from <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> is expected to cross Rs 1.28 lakh crore in the next financial year, Minister of State for Electronics and IT Rajeev <keyword id="79017" type="General" weightage="50" keywordseo="chandrasekhar" source="Orion">Chandrasekhar</keyword> has said. The minister, in an interview with PTI, said the government is now going to broaden and widen the electronics manufacturing ecosystem with a new production-linked incentive scheme for hearable-wearable, IT hardware and component makers. "Electronics manufacturing as a whole, we see next year that we will at least do exports worth Rs 1.28 lakh crore. I have already said that we will see mobile phone exports reaching Rs 1 lakh crore in 2023-24," Chandrasekhar said. There has been a focus on mobile phones because it is the fastest-growing segment in electronics across the world, he added. "Value addition in manufacturing is a function of scale. First, you need to hit the scale. The component industry is the one which does value addition. Components will not come if the scale of manufacturing is not there. The next stage of our PLI is to get components PLI, hearable-wearable PLI and the IT server PLI," the minister said. The government will do 100 per cent hand-holding of component players to boost the local ecosystem, he noted. Electronics component makers' body ELCINA has requested the government to allocate USD 10 billion (about Rs 80,000 crore) for 8 years to boost manufacturing of electronic components and key modules other than semiconductors. It has sought a four-year extension to the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), with an increased outlay of Rs 16,000 crore in the <keyword id="6360189" type="General" weightage="80" keywordseo="union-budget" source="Orion">Union Budget</keyword> for 2023-24. According to ELCINA, the upgraded PLI will facilitate investments of around Rs 64,000 crore with a targeted output of USD 24 billion (about Rs 1.95 lakh crore) for all components other than semiconductors. The industry body has also sought reinstatement of income tax relief for the investment made in research and development. It has also asked for a PLI scheme with a focus on domestic electronics manufacturing services companies. <keyword id="292934" type="General" weightage="80" keywordseo="india-electronics" source="Orion">India Electronics</keyword> and Semiconductor Association (IESA) has requested the government to convert the PLI scheme into a design-led manufacturing scheme and impose an import duty of 10 per cent on any imported electronics equipment and assembled printed circuit board (PCB) to boost local manufacturing.

Electronics export from India to cross ₹1.28 lakh crore next fiscal: MoS IT

With Taiwanese electronics manufacturer <keyword id="1930805" type="General" weightage="20" keywordseo="Wistron" source="Orion">Wistron</keyword> selling its India operations to <keyword id="6355725" type="General" weightage="20" keywordseo="tata-group" source="Orion">Tata Group</keyword> for $125 million, Tata Electronics is going to become the first Indian company to manufacture new Apple iPhones in the country, which is a major fillip to the government's 'Make in India' initiative. Currently, iPhone 15 Plus, iPhone 12 and iPhone SE (second generation) are being manufactured/ assembled at Wistron's factory in Karnataka, which Tatas will take over. The company said in its regulatory filing that it will sell a 100 per cent stake in the unit Wistron InfoComm Manufacturing (India) Pvt. to Tata Electronics Pvt., following the board approval. The much-awaited deal has been finalised after strategic considerations in response to the reshaping of the group's product strategy and global manufacturing layout. Minister of State for Electronics and IT, Rajeev Chandrasekhar, said that within just two and a half years, Tata Group will start making iPhones from India for domestic and global markets. "PM Narendra Modi's visionary PLI scheme has already propelled India into becoming a trusted and major hub for smartphone manufacturing and exports. Congratulations to the Tata team for taking over Wistron operations," the minister posted on X. He said that this is a "great going for Apple in building a global supply chain from India with Indian companies at its helm". "MeitY stands fully in support in growth of global Indian electronics companies that will, in turn, support global electronic brands that want to make India their trusted manufacturing and talent partner," Chandrasekhar added. Industry experts said that with their ambition on semiconductors and EVs, it only makes sense for the Tata Group to gain expertise in manufacturing high-end iPhones in the country. "With the Wistron acquisition, Tata Group will get a leg-up on its electronics manufacturing ambitions with the iPhones, and the possibility of manufacturing top-end iPhone models as well in the near future. We anticipate 'Make in India' to gain further momentum, and India to emerge as a major fulcrum in the global electronics value chain," Prabhu Ram, Head-Industry Intelligence Group, CMR, told IANS. In the years ahead, the Tata Group has the potential to solidify their position as a pivotal player in the iPhone manufacturing ecosystem. Wistron's factory in Karnataka, that employs about 12,000 people, constitutes a major chunk of its business in the country. As the iPhone consumption increases in the country, Apple needs more suppliers to ramp up production here, as it reportedly aims to take away a significant chunk of manufacturing from China to countries like India and Vietnam. Driven by domestic manufacturing, Apple iPhones are set to garner 7 per cent market share in the Android-dominated smartphone market in India this year, according to latest data. Apple iPhone shipments grew 68 per cent (year-on-year) in the first half of this year in the country. CMR estimates the iPhone 15 shipments in the launch quarter (October-December period) to hover around 65 per cent, driven by an increased 'Make in India' initiative. For the first time, 'Make in India' iPhone 15 units were exported to other countries within a short span of time from its global launch last month. Apple received tremendous response to the iPhone 15 series in the country -- nearly 50 per cent more from last year. Apple had set a June quarter record in India, driven by the robust sales of iPhones, according to CEO <keyword id="191843" type="General" weightage="50" keywordseo="tim-cook" source="Orion">Tim Cook</keyword>. Tarun Pathak, Research Director at Counterpoint, told that Tatas' semiconductor ambitions are serious and came at a very important juncture amid India's digital goals. "First, they can leverage the semiconductor strength in their EV business and second, their chips can be aligned with Apple in the future and the learning curve will be great for them," Pathak told IANS. India is now the second-biggest manufacturing hub for mobile phones due to heavy investment from original equipment manufacturers, original design manufacturers and companies dealing in components and parts, according to Counterpoint. The country saw mobile phone exports worth $5.5 billion (over Rs 45,000 crore) in the April-August period in the current fiscal year (FY24), government and industry data showed. As per the estimates by the <keyword id="113018" type="General" weightage="50" keywordseo="department-of-commerce" source="Orion">Department of Commerce</keyword> and the <keyword id="7825659" type="General" weightage="50" keywordseo="india-cellular-and-electronics-association" source="Orion">India Cellular and Electronics Association</keyword> (ICEA), the April-August period saw mobile phone exports worth $5.5 billion, against $3 billion (about Rs 25,000 crore) in the same period in FY22-23. India is set to cross Rs 1,20,000 crore in mobile phone exports in the current fiscal year, with Apple leading the market with more than 50 per cent in FY24.

Tatas set to write new India iPhone manufacturing story post Wistron plant acquisition

New Delhi, <keyword id="1065858" type="General" weightage="20" keywordseo="iphone-maker" source="Orion">iPhone-maker</keyword> <keyword id="1676619" type="General" weightage="20" keywordseo="apples-supplier" source="Orion">Apple's supplier</keyword> <keyword id="6354671" type="General" weightage="20" keywordseo="foxconn" source="Orion">Foxconn</keyword> has committed to doubling employment, investments and business size in India by next year, underlining its smooth and rapid growth in the country, according to a social media post by a company executive. Wishing Prime Minister Narendra Modi on his birthday on Sunday, Foxconn representative V Lee wrote in a LinkedIn post: "Under your leadership, Foxconn has grown smoothly and rapidly in India". "We will work even harder to present you with a greater birthday gift next year, aiming for another doubling of employment, FDI, and business size in India," Lee said in the post. Replying to the post on X (formerly Twitter), IT, Electronics and Communications Minister Ashwini Vaishnaw said that the Government is "fully committed" in its endeavour to support and facilitate. Earlier this month, Young Liu, Chairman and CEO of Hon Hai Technology Group (Foxconn), said that India will be an important country in terms of manufacturing in the future, his comment adding to a growing chorus of global voices acknowledging the country's bold moves to position itself as electronics and hi-tech production powerhouse. In an interaction with reporters in Taipei, the top honcho of the Taiwanese electronics manufacturing giant had further said the development of the entire ecosystem and industrial chain, and opportunities for development in India are "very, very huge opportunities". "If there is no big change, India will be a very important country in terms of manufacturing in the future," Liu had said. In the past, it took 30 years to build the entire supply chain ecosystem in China, he noted, adding that while it will take an "appropriate amount of time in India" and the process will be shorter given the experience. The environment too is not quite the same, he had said pointing to the advent of new technologies like AI and generative AI. India is wooing global IT and electronics players with policy sweeteners and incentive schemes, making a push to position itself as a global hub for hi-tech manufacturing. India hopes to play on the strength of its storied talent and skill base, vibrant market, and enabling policies to corner a substantial chunk of new investments flowing into electronics and semiconductor production, and global value chains. Recently, as many as 40 companies, including big names like Foxconn Group, HP, Dell and Lenovo, applied for incentives under India's Production Linked Incentive (PLI) IT hardware scheme for manufacturing laptops, PCs and servers. Last month, Foxconn also said it sees the potential of investing several billions of dollars in India if it gets to completely implement its plan. Liu during Foxconn's second quarter earnings call in August had said that the company's Indian arm has achieved a turnover of close to USD 10 billion on an annual basis and there is a lot of investment potential in India. He had said Foxconn operates about nine campuses in India.

Foxconn commits to double employment, investments in India

<ul><li><keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword> has manufactured 2 billion smartphones between 2014 and 2022.</li><li>The country is now the second largest manufacturer of smartphones after China.</li><li>98% of the smartphones sold in India in 2022 were manufactured locally.</li></ul> The push to make India a hub for smartphone manufacturing as part of the Make in India initiative is yielding results. India has emerged as the second largest smartphone manufacturer after China. According to a<a href="https://www.counterpointresearch.com/india-mobile-phone-production/"> report</a> by Counterpoint Research, mobile phone production in India has crossed the 2 billion cumulative mark under the Make in India initiative during 2014-2022. <cmsannotation type="cmsannotation" annotationid="Increase in shipments" comment="subhead" text="Increase in shipments">Increase in shipments</cmsannotation> According to the report domestic production of smartphones is expected to hit 270 million this year, up from last year’s 250 million. Most smartphones sold in India presently are manufactured locally. Out of the 250 million smartphones produced last year, the country exported 20% of the devices. “In 2022, more than 98% of shipments in the overall Indian market were ‘Made in India’, compared to just 19% in 2014,” said Tarun Pathak, research director, Counterpoint Research. It’s not just production that has been on the rise, local value addition has also reached an all-time high. “Local value addition in India currently stands at an average of more than 15%, compared to the low single digits eight years ago,” Pathak added. “The government now intends to capitalise on its various schemes to make India a ‘semiconductor manufacturing and export hub’. Going forward, we may see increasing production, especially for <a href="https://www.counterpointresearch.com/global-smartphone-market-q1-2023-infographic/">smartphones</a>, as India gears to bridge the urban-rural digital divide and also become a mobile phone exporting powerhouse,” Pathak said. <cmsannotation type="cmsannotation" annotationid="Apple accounts for a huge chunk" comment="subhead" text="Apple accounts for a huge chunk">Apple accounts for a huge chunk</cmsannotation> According to a report by ET, Apple accounted for 25% of the total value of domestically manufactured smartphones in 2022, more than double the 12% in 2021. While Apple’s production has increased by 65% year-on-year in 2022, its value has increased by 162%. One of the reasons for this could be the increased sales of premium <keyword id="57315" type="General" weightage="50" keywordseo="iphones" source="Orion">iPhones</keyword>. <cmsannotation type="cmsannotation" annotationid="India records 23% CAGR" comment="subhead" text="India records 23% CAGR">India records 23% CAGR</cmsannotation> India has reportedly recorded a compounded annual growth rate (CAGR) of 23%. Huge internal demand, increasing digital literacy and government’s push are reported to be the top reasons for this growth. The Indian government has introduced schemes such as Phased Manufacturing Program (PMP), Make in India, <keyword id="8870884" type="General" weightage="50" keywordseo="production-linked-incentive" source="Orion">Production Linked Incentive</keyword> (PLI) and Atmanirbhar Bharat to increase local manufacturing. SEE ALSO: <a href="https://www.businessinsider.in/tech/gadgets/news/with-smartwatches-leading-the-pack-indian-wearables-market-grows-over-50-in-the-first-half-of-2023/articleshow/102638102.cms">With smartwatches leading the pack, Indian wearables market grows over 50% in the first half of 2023</a> <a href="https://www.businessinsider.in/finance/news/cash-card-or-talk-rbi-bats-for-conversational-upi-increased-offline-payments/articleshow/102599474.cms">UPI joins the AI bandwagon, offline payments get a push</a> <a href="https://www.businessinsider.in/business/auto/news/auto-sales-slip-5-percent-in-july-companies-build-up-inventory-ahead-of-the-festive-season/articleshow/102494498.cms">As auto sales slip in July, dealers pin hopes on upcoming festive fervour</a>

India crosses the 2 billion mark in its journey to become a smartphone manufacturing powerhouse

<ul><li>India poised to have 1 billion smartphone users by 2026 and will be the second-largest smartphone manufacturer in the next five years.</li><li>India to catch on to the <keyword id="13228644" type="General" weightage="20" keywordseo="global-Non-fungible-Tokens" source="Orion">global Non-fungible Tokens</keyword> (NFTs) revolution with favourable regulations.</li><li>The AI market to grow at a CAGR of 20.2 percent globally to reach US$7.8 billion by 2025; AI to have a promising future in India.</li></ul> Favourable policies, convenience-driven mindset, and evolution of the new normal have brought in a renewed focus on tech adoption. Smartphones now act as a catalyst for digital penetration across the tier-2 and 3 markets in India. The India edition of Deloitte’s 2022 Global TMT (Technology, Media, and Entertainment, Telecom) predictions indicates that digital and mobile are the key enablers of the future of technology. This edition captures the latest trends in the Indian TMT space that are driven by the economic and societal shifts caused by the global pandemic. These trends are poised to result in a better-connected ecosystem of multiple digital devices that can meet the world's ever-increasing need for faster connectivity, and more chips and entertainment options. Moreover, an evolving marketplace for NFT, increasing diversity in talent and participation of women in the tech industry, and rising popularity of AI and app-centric approach to promote mental health and wellness indicate enhanced digital maturity for businesses. Technology sector prediction - The urgency to address semiconductor chips shortage The global shortage of semiconductor chips has affected the manufacturing industries across the world. As demand soars, supply is likely to be constrained in the near term, but gradually ease up in 2023. With an increase in supply and normalisation of demand, and the specific initiatives muted by GOI, India can play on the strength of its large and thriving domestic market to form a basis for setting up the domestic semiconductor and electronics manufacturing industries in the next three-five years. “As the ecosystem matures in the medium to long term, we expect India to emerge as a strong regional hub in semiconductor and electronics manufacturing”, said P. N. Sudarshan, Partner and TMT Industry Leader, Deloitte India. He added, “The government’s recent announcement on the Production Linked Incentive (PLI) scheme for the semiconductor and electronics manufacturing industries has the potential to create an end-to-end ecosystem for manufacturing electronic products. We expect the broader shift to digital to continue in 2022 and drive the industry growth in the future.” Telecom sector prediction: 1 billion smartphone users by 2026 In 2021, the Indian telecom sector has undergone major policy reforms to reset growth and revive the health of the operators. The total cumulative shipments of smartphones in the country are expected to reach 1.7 billion units from 2022 to 2026, creating a market of about US$250 billion. According to Deloitte’s analysis, smartphone demand in India will increase at a CAGR of 6 per cent in the rural market and at a CAGR OF 2.5 per cent in the urban market to reach a cumulative number of about 400 million units being sold in 2026. This is largely propelled by demand for internet services in the rural market with the adoption of E-learning, Fintech and E-health platforms. Internet enabled devices in the rural market will also get a push with the government’s plan to fiberize all villages by 2025 under the BharatNet program. 5G devices will alone contribute 80 percent (about 310 million devices) to smartphone demand by 2026. Furthermore, the recently announced incentive package of US$10 billion to drive semiconductor manufacturing in India and the PLI schemes will encourage handset manufacturing in India to service the second-largest smartphone market in the next five years. Peeyush Vaish, Partner and Telecom Sector Leader, Deloitte India, said “India will have 1 billion smartphone users by 2026. This growth will result in over 75 percent of the subscribers using smartphones by 2026 from a sub- seventy percent as on date. 5G enabled devices will contribute 80 percent to the devices being sold in the year 2026 and Indian consumers will purchase 840 million 5G smartphones over the next 5 years valued at US$130 billion. In addition, 5G will fuel an incremental sale of 135 million smartphone units over the next 5 years.” Media sector prediction: The Indian streaming industry to evolve dramatically Greater adoption by audiences, the popularity of international content (such as Korean, Israeli, or Spanish) in India, and the ability to attract a wider audience through subtitles and dubbed content, have broken previously held views on the characteristics of the Indian market. These trends have forced many streaming companies to revise their original strategies. Pricing for streaming services will remain competitive as service providers attempt to stabilise and consolidate their customer base. However, in a rapidly evolving market, streaming players would rather focus on customer acquisition instead of customer churn. As prices stabilise and content libraries become nuanced and structured, the focus will shift to the minimisation of churn. Jehil Thakkar, Partner, Media and Entertainment Sector Leader, Deloitte India, said “Evolving consumer behaviour in view of the pandemic has increased digital content consumption in India. Audiences are experimenting with genres and languages with regional content breaking out of its traditional boundaries. Fierce competition is likely to persist in the short-to-medium term with more than 40 service providers in the fray.” This growth will be driven by heavy investment in original content, pricing innovations, low data costs, and the rise of short-form content. However, this progression from the early to mass stage might come at a cost to the broader media industry as subscribers, especially in tier-1 and tier-2 cities, may switch to more streaming content from traditional linear TV. We, however, do not expect India to cut the cord. Gaming and commerce are important elements contributing to attract, retain and amplify consumer stickiness as the battle within the evolving digital world continues. Other highlights in the Deloitte “TMT Predictions 2022” report India all set to catch on to the global NFT revolution; entertainment and sports NFTs will disrupt the industry in India: Deloitte Global predicts that NFTs for sports media will generate more than US$2 billion in transactions in 2022, about double the figure for 2021. Given the global trends and the government of India’s pending policy/regulatory framework in this area, it is a matter of time before NFT-based market for movies and sports memorabilia becomes a reality in India. The future of AI in India: More market players are realising AI’s importance, including its ability to provide competitive advantage and sculpt the future of work. In 2022, we expect to see India’s AI priorities shift towards cost efficiencies and employee productivity. Mental health becomes a priority with increasing app penetration: Given the challenges related to awareness, access, and capacity, technology can play a significant role in building scalable solutions that can help the population at large. About **36 percent of the Indian millennials have a fitness app installed on their phones and ~45 percent think leading a healthy life is essential. Floating Solar Photovoltaics (FSPVs) as a means for scaling solar PV deployment: FSPVs is expected to play an important role in paving the path for India’s energy sufficiency given the natural advantage of a vast coastline. With reduced crude prices and improved designs, Deloitte India predicts a significant rise taking place as both central and state government agencies might announce more floating solar projects. Deloitte India further estimates that the FSPV sector in India has a high potential to become self-sustainable largely due to the benefit of economies of scale as and when the tariff rate reduces over the next few years.

NFTs for sports media will generate more than $2 billion in transactions in 2022, about double the figure for 2021: Deloitte report

<ul><li>Over 22 firms including Apple, Samsung, Lava line up with proposals to manufacture mobile phones in India</li><li>Government's production-linked incentive (PLI) scheme for <keyword id="2922097" type="PERSON" weightage="20" keywordseo="mobile-phone-manufacturing">mobile phone manufacturing</keyword> expected to create around 12 lakh jobs</li><li>There is no price limit for Indian companies under the scheme.</li></ul> As many as 22 domestic and international firms, including iPhone maker Apple's contract manufacturers as well as Samsung, Lava, Dixon and so forth, have lined up with proposals for mobile phones production worth Rs 11 lakh crore over the next five years, Union Telecom and IT Minister <keyword id="6354886" type="PERSON" weightage="20" keywordseo="Ravi-Shankar-Prasad">Ravi Shankar Prasad</keyword> said on Saturday. The minister said these proposals under the government's Rs 41,000-crore production-linked incentive (PLI) scheme for mobile phone manufacturing are expected to create around 12 lakh jobs, 3 lakh direct and 9 lakh indirect employment opportunities, in the country. "There will be huge (mobile phone) production of around Rs 11 lakh crore, huge export of around Rs 7 lakh crore and great employment opportunity for 3 lakh direct and 9 lakh indirect people. I personally thank all the companies that have applied," Prasad told reporters. He said that a total of 22 companies have filed applications under the PLI scheme from various countries including Taiwan, South Korea, Germany, Austria, etc. "The benchmark for international companies was that they make mobile phones priced at or above Rs 15,000. International companies that have applied are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron," Prasad said. Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. There is no price limit for Indian companies under the scheme. In terms of revenue, Apple accounts for 37 per cent and Samsung 22 per cent for global sales of mobile phones and the PLI scheme is expected to increase their manufacturing base manifold in the country, an official statement issued by the Ministry of Electronics and IT (Meity) said. The minister further said these companies will make thousands of crores investments based on the approval of their proposal. Prasad said Indian companies, including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics, have applied under the scheme and 10 companies have filed applications under the Specified Electronic Components Segment. The companies that have applied for components production of around Rs 45,000 crore include AT&amp;S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync. There were no applications from Chinese companies under the scheme. The minister said India is not averse to investment from any country but companies will have to follow rules related to security clearance, etc. The government notified production linked incentive scheme for large scale electronics manufacturing, the scheme for promotion of manufacturing of electronic components and semiconductors, and the modified electronics manufacturing clusters (EMC 2.0) scheme. The government expects to attract Rs 1 lakh crore investment in the sector and sees a target manufacturing revenue potential of Rs 10 lakh crore by 2025. The fresh proposals have exceeded the government's manufacturing revenue target but the final outcome will depend on the decision of the screening committee that will select projects eligible for incentives.

Apple vendors, Samsung, others line up with ₹11-lakh cr mobile phone mfg proposals: Prasad

New Delhi, June 11 (IANS) With a three-pronged strategy (restart, restore and resurgence), India can achieve $100 billion in mobile phones and nearly $40 billion in component exports by 2025, a new report said on Thursday. The strategy document titled "Mobile Manufacturing in a post-COVID-19 World" by industry body India Cellular and Electronics Association (ICEA) and consultancy major EY, offers a roadmap for the Indian industry to become a global supplier of mobile phones in a world where two countries -- China and Vietnam -- and five global companies dominate over 80 per cent of the world's export market. Nearly 198 countries import mobile phones, and till recently, only two countries -- China and Vietnam -- were among the exporters. India joined the ranks as a third with a modest $3 billion exports in 2019-20. It now aims to target the number two spot. "The mobile manufacturing and components sector is ready to lead India's post COVID-19 exit strategy. Production has restarted. We hope to hit 100% production by August," Pankaj Mohindroo, Chairman, ICEA, told reporters in a video call. India earlier this month launched three major schemes to boost manufacture of electronics in the country -- Production Linked Incentive Scheme (PLI) for large-scale electronics manufacturing, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme. The three schemes would entail an outlay of about Rs 50,000 crore. "As the PLI scheme kicks in, we plan to ramp up global exports from India. There isn't a moment left to waste," Mohindroo added. He said that the Indian mobile phone manufacturing industry is moving forward harmoniously. "There is no such this as a domestic lobby and an international lobby here...We cannot work only on the supposedly big Indian market. We will have to export," he said, adding that in the next four to five years the big global companies will be manufacturing in India for their global exports. ICEA represents mobile and component manufacturers such as Apple, Motorola, Xiaomi, Nokia, Foxconn, Wistron, Flextronics, Lava, Vivo and others. The plan prepared by ICEA and EY which aims at transforming mobile manufacturing and components into India's largest export within the next 3-4 years, aligns closely with the government's National Policy on Electronics (NPE-2019). "The introduction of the incentive schemes like PLI, SPECS and EMC will bring resurgence in the manufacturing environment and create a competitive global ecosystem for India to capture the global market share of mobile phones, parts and accessories," said Bipin Sapra, Indirect Tax Partner Telecom sector, EY India. The report also pointed out areas of improvement, such as the need to shift large-scale global value chains, reduce cost of inputs and the need to increase competitiveness by building a low-cost domestic ecosystem and seeking partnership with states to address India's disabilities. From just two mobile phone factories in 2014, India now has become the second largest mobile phone producer in the world, according to the IT Ministry. --IANS gb/na

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India crosses the 2 billion mark in its journey to become a smartphone manufacturing powerhouse

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NFTs for sports media will generate more than $2 billion in transactions in 2022, about double the figure for 2021: Deloitte report

BI India Partner

Apple vendors, Samsung, others line up with ₹11-lakh cr mobile phone mfg proposals: Prasad

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India mobile handset industry can reach $100bn in exports by 2025: ICEA-EY

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