In September 2015, Rahul Sharma, the founder of the Indian phone maker Micromax, was so strong that he often reiterated at the launch of the phone that he needed just five countries to sell 100 million phones. There was a reason behind this belief.
Micromax launched its phone in Russia in the year 2014 and by 2015 September, its share in the Russian phone market was 4.5 percent. The enthusiasm of Karbonn, Lava, the other mobile phone companies of the country, was also in spate. Celebrities like Amitabh Bachchan were his brand ambassadors. But what happened after that is the history of China’s dominance in the Indian mobile industry.
Indian Mobile Industries
By 2015, India’s four mobile phone companies Micromax, Lava, Intex, and Karbonn had a market share of 31 percent, which fell to 7 percent by the year 2018. Now, when there are anger and strictness about sugar products from the government to the people of the country, the enthusiasm of Indian companies has started increasing. The path to self-sufficiency in electronics is difficult but not impossible.
Four of the five companies that hold up to 80 percent of their market share in the Indian smartphone market are Xiaomi, Oppo, Vivo, Redmi China. It should also be noted that in the year 2017 also, the government announced to bring a phased manufacturing program (PMP) to encourage electronics and electricals manufacturing so that India can reduce the imports of electronics and electricals, and China is also the biggest beneficiary of this. Companies raised.
With the entry of these companies under Make in India, India’s import bill from China in this sector fell from $ 28 billion to $ 19 billion in the last two years. This is a big deal, but the goal of self-reliance cannot be achieved only by getting rid of China.
According to the Commerce Ministry data, electronics imports from all countries have decreased by only $ 3 billion in the last year. According to the Commerce Ministry data, total imports of electronics goods stood at $ 52 billion in FY 2018-19, while in the last financial year 2019-20, this import was $ 49 billion.
However, the assembling of mobile phones and other electronics goods is being done in India right now. Without full manufacturing, dependence on China cannot be over. Now the domestic company Karbonn Mobile is starting anew in the Indian market.
How will India compete with China in the smartphone industry
The company’s MD Pradeep Jain admits that ‘it will not be easy to break the supremacy of China but it will be launched .. We are completely ready to make cheap and modern mobile phones like China’.
Micromax is also preparing to bring three smartphones. The effort of these companies is that in this festive season, India-made handsets are dominated by Chinese mobile companies. According to Vinod Sharma, chairman of the National ICTE Manufacturing Committee of the industrial organization CII, “This is a golden opportunity to take the domestic production of all types of electricals and electronics goods.”
There is also a climate against China and there is cooperation from government agencies. Production linked incentives have been announced. However, customers will find the Made in India product a little expensive at the moment.
Small parts used in the electronics industry have now started being manufactured in India but most of the items are still being imported. According to experts, India will now have to take the assembly work to the next level. For this, a policy is needed to encourage assembling companies to manufacture all the goods in India itself.
Experts also say that a major problem is coming from the lack of production at the mass level. There is a huge production in China, which brings down the cost considerably. According to the report of the Indian Cellular and Electronics Association (ICEA), manufacturing costs in India are much higher than in China and Vietnam.
According to the report, if the cost of a mobile phone is 100 rupees, then due to the offer incentive from the Government of India, the cost is reduced by 5.88-66.7 percent. At the same time, the cost decreases from the incentive found in Vietnam to 9.4-11.5 percent, and the incentive from China is 19.2-21.7 percent. Without bringing costs to this level, Indian companies cannot compete with countries like China and Vietnam.