China is touted as the largest manufacturer of smartphones in the world. In 2019 alone, the country produced around 2 billion units. Comparatively, India still has a long way to go before it can catch up to this figure.
Nevertheless, the number of Indian mobile brands is continuously growing with each passing year. The country is also in the process of luring major global smartphone companies to set up manufacturing plants in the nation.
Here are some ways in which India can surpass China when it comes to smartphone manufacture.
Encourage companies to manufacture smartphone parts
A smartphone manufacturing plant is mostly an assembling centre, where the mobile phone company simply puts together the various parts of a device. These parts are manufactured by smaller and local Chinese companies. Thus, the country needs more Indian mobile brands to produce these high quality parts at better rates than China does.
With time, the availability of these parts would lead to major players like Apple and Samsung considering India as their primary source of supply.
Invite brands by easing FDI terms
Foreign direct investment is the process through which companies from one nation can acquire ownership of another enterprise in a different country. India�s FDI regulations tend to be stringent in some cases, which have limited foreign investment significantly.
To ensure sufficient growth of Indian mobile brands, the country�s federal governments need to ease these rules.
Incentivising manufacturing in India
Global smartphone companies need a good reason to shift their manufacturing base to India. Offering certain incentives to them for doing so can make them consider such a move. The recent �Make in India� initiative looks to offer a 4-6% additional income to smartphone brands who manufacture products locally and sell them in the Indian market. It is an apt step in realising the goal of mass-manufacturing the best-selling mobile phones in the country.
Now that you know about the various aspects where India lacks when it comes to smartphone manufacturing, you must also know some of the country�s strengths in this regard.
What does India offer to smartphone companies?
The country is diverse when it comes to raw material required for running such an industry. India is home to several kinds of ore and metal deposits, all of which are essential for mobile phone production.
The Indian populace is comprised of individuals with diverse skills and knowledge. Therefore, they make a suitable workforce for manufacturing plants. Moreover, labour is cheap when compared to many other developed nations, which can reduce production expenses for mobile phones significantly.
A higher number of Indian mobile brands would also ensure cheaper smartphone prices across the country. Presently, buyers need to bear substantial expenses when acquiring premium handsets. Even though Bajaj Finserv EMI Network members can offset some of the financial burden through No-Cost EMI options, lower prices would benefit all.
The Bajaj Finserv EMI Network Card can prove to be an essential financial tool with EMI tenures of up to 24 months and hassle-free access to credit worth up to Rs.4 lakh. Thus, if you plan to acquire best-selling mobile phones models, this card can prove to be of just the right financial assistance.
Pre-approved offers from the card provider can further ensure fast and easy credit applications. These offers are also available on a range of financial products like credit cards, personal loans, and others. You can check your pre-approved offer by submitting essential information, such as your full name and contact details.
In the absence of such financing, individuals would need to wait and hope for increased Indian manufacture of handsets. These businesses would boost the country�s economy significantly, thereby providing an impetus to not just the tech industry but the GDP as well.