Abstract China is the world's largest mobile phone manufacturing countries, however, the Indian government through the "Made in India" program is ready to learn from China's successful experience in the manufacturing sector, according to Indian media reports, India's mobile phone industry has become the most successful manufacturing plan .. .
China is the world's largest mobile phone manufacturing country. However, the Indian government is preparing to learn from China's successful experience in the manufacturing sector through the “Made in India†program. According to Indian media reports, the mobile phone manufacturing industry has become the most successful industry in India's manufacturing program. The Indian mobile phone production value has already increased fivefold. As is known to all, almost all of China's first- and second-line smartphone brands have already entered India, and companies such as Xiaomi and Lenovo have already produced mobile phones in India.
According to the latest news from the Indian media, Xiaomi will cooperate with the Foxconn Group to open a second mobile phone factory in Andhra Pradesh, employing 5,000 employees. In the future, Xiaomi’s mobile phone production in India will reach one per second.
According to the Hindustan Times, mobile phones have become the best performing manufacturing industry in the “Made in India†program launched two years ago by the Modi government. Since September 2014, India has had 40 mobile phone factories in operation. These factories can produce 20 million mobile phones per month.
Electronic foundry companies that used China as their main manufacturing base have already entered India, such as Wistron, Flextronics, and Foxconn Group. Singapore-based Flextronics has also built a mobile phone manufacturing base in Chennai, India, which has reached the capacity of 10 million mobile phones. The base covers an area of ​​more than 600 acres and is currently manufacturing mobile phones for companies such as Lenovo Group, Huawei, and Motorola Mobility.
This development is in stark contrast to the past. Three years ago, the vast majority of smartphones sold in the Indian market still needed imports, but now the proportion of localization in India is rising. For example, after the second plant of Xiaomi is put into production, more than 90% of the sales will be made in China.
Jeff Reece, an executive at Flextronics, said that the Indian market has something in common with China, such as a large consumer base, and the middle class has begun to rise.
With a high level of English, India has long been a world-renowned service outsourcing base, known as the "World Office" (China is known as the world factory), but the Indian government is no longer satisfied with the service industry, and hopes to develop India's native manufacturing. Among the newly announced local manufacturing projects, electronics manufacturing has a very high proportion. For example, companies such as Foxconn Group, Huawei, OPPO, and LeTV are preparing to manufacture mobile phones in India. If there is no active mobile phone industry, the Indian manufacturing plan may be Be dimmed a lot.
In 2016, India’s foreign direct investment increased by 18% year-on-year, the most popular of which was the service industry, which received $7.5 billion. The second place included the telecommunications sector, which includes mobile phone manufacturing, which attracted a total of $5.5 billion. .
Many experts pointed out that the rapid development of the Indian mobile phone manufacturing industry is closely related to the Indian government's incentive policies, especially taxation policies. Last year, India raised tariffs on imported electronic products. If a mobile phone is manufactured locally in India, it only needs to pay a 1% tax burden. If it is imported, it needs to pay 12.5%. Nearly 10% of the tax burden has caused Chinese mobile phone companies to open factories in India.
In addition to import tariffs, the Indian government has also provided other packages of preferential policies, and all imported parts are exempt from customs duties (excluding a few components such as adapters, batteries, headphones, etc.).
The purpose of the Modi government's Indian manufacturing program is to create more jobs for India and improve the technical capabilities of workers. However, if India wants to repeat China's past successes (such as the addition of 64 million new manufacturing jobs from 2011 to 2016), India needs to improve in many ways.
The above-mentioned executives of Flextronics said that India's infrastructure is still facing challenges. In addition, the process of doing business in various states of India needs to be more “seamlessâ€, and India must build a local parts supply chain.
According to statistics, in the past two years, the mobile phone manufacturing industry has contributed 38,000 jobs to India, of which Foxconn became the largest employer, employing a total of 8,000 people.
It is estimated that all output value contributed by the mobile phone manufacturing industry will account for 8.2% of India's GDP by 2020 and will continue to increase 800,000 jobs.
At present, India's mobile phone manufacturing industry is still at the level of component assembly, that is, manufacturers import all mobile phone parts (including circuit boards, chipset, etc.) from abroad, and Indian workers assemble parts into finished mobile phones. Launched to the Indian market.
At present, there are no excellent mobile phone component manufacturers in India, so importing from overseas is almost the only option.
Indian media believe that the mobile phone component industry also provides an opportunity for the Indian government. Indian business person P. Sanjeev said that with the increase in demand for mobile phones and the overall ecosystem development, India should also develop the local parts industry.
The media believes that the Indian government can also learn from China's experience in the field of parts and components. In order to encourage the development of Chinese brands and expand the scale advantage, the Chinese government actively encourages the development of the parts and components industry, including mobile phones, automobiles, and parts for solar power plants.
However, the component industry of smartphones requires long-term technical accumulation and excellent development talents. At present, global mobile phone parts companies are mainly concentrated in Japan, South Korea, China and Taiwan. For example, China's Spreadtrum and other companies have developed into the world's third largest mobile phone chip maker, and recently, in order to purchase OLED display, the US Apple has also contacted China's BOE. Companies like Samsung Electronics will also purchase lithium batteries from Chinese companies.
It is worth mentioning that the Indian mobile phone manufacturing industry has to catch up with China, and there is still a long way to go. According to the statistics of the Ministry of Industry and Information Technology of China, in 2016, Chinese companies produced a total of 2.1 billion mobile phones, of which 1.5 billion were smartphones, and the output of smart phones increased by 10%. In other words, most mobile phones sold worldwide, production sites It is in China.
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