October 25, according to Reuters, India's mobile communications industry has flourished in recent years, its domestic smartphone manufacturers have not only rely on the import of cheap mobile phones from abroad, but set up factories, expanding, with the intention of building into the Global Electronics manufacturing Center.
Lava, a smartphone maker, is a small Indian company, but Indian Prime Minister Narendra Modi sees it as a model for India to build a global electronics manufacturing hub.
A few years ago, lava also imported cheap mobile phones from China, but now it operates two factory production facilities in suburban New Delhi, with about 3500 employees, and continues to expand.
Indian Prime Minister Narendra Modi has promised to create tens of millions of new jobs at home despite many obstacles, Indian smartphone production has become a bright spot for Asia's third-largest economy.
Like local Indian companies such as lava, the global smartphone giant, which includes Samsung, Oppo and Xiaomi, has expanded rapidly in India, starting to introduce parts suppliers and boosting production upgrades for foundry companies such as Foxconn.
According to the Indian mobile phone and Electronics Association, more than 120 new manufacturers have created about 450,000 jobs in the mobile phone industry over the past 4 years, thanks in large part to the ' Made in India ' campaign and a plan to impose high tariffs on imported equipment and parts in stages.
This fact makes India the world's second-largest handset maker and will grow further. Vikas Agarwal, head of India OnePlus, a Chinese smartphone maker, told: ' India has a chance to be a major player in the global supply chain because its domestic economy is very strong.
' He added that India still needs to encourage the production of high-value components as well as research and development, ' but at least we've made a very good start.
' The rise of Indian industry is particularly evident in Noida (Indian city of Noida), which is home to lava, the local handset maker.
Noida used to be a gathering place for technology outsourcing companies, and today, a wide variety of companies, from the production of headphones to chargers to high-end smartphones, are emerging.
Sangive Agavar, Lava's head of manufacturing, said local production was helping them reduce costs, with high-quality equipment produced selling for less than $150 trillion.
Most of the company's product designs are still in China, but the company plans to bring the work to India in the next few years, Agarwal said.
He said the establishment of local factories had accelerated innovation while also reducing, and even relieving, tax costs. Lava has no shortage of ' big neighbors ' in Noida, such as Samsung, which has opened what is said to be the world's largest mobile phone factory here this year.
Samsung said last year it would spend 49.2 billion rupees (672.45 million U.S. dollars) over three years to expand the plant's capacity.
Not far from the Samsung plant, one of India's largest smartphone makers, China's oppo, is also building a large plant, which is expected to open soon.
One more option In 2016, Indian Prime Minister Narendra Modi launched the so-called phased manufacturing program, which aims to take advantage of India's vast smartphone market to boost local production.
India has more than 1 billion mobile phone users, and about 380 million of them do not yet have smartphones.
The manufacturing plan includes not only import duties on mobile phones, but also import duties on accessories such as mobile phone chargers, batteries and headphones, as well as import duties on parts such as pre-installed printed circuit boards.
Many of Xiaomi's mobile phones are being produced using Foxconn's southern India plant, and a total of 6 plants are producing their equipment.
Just as important, Xiaomi said this year that it hoped its parts suppliers would also open stores in India in a move that could lead to up to $2.5 billion in investment and create up to 50,000 jobs. Xiaomi supplier Heli Technology has pledged to invest about $200 million in India over the next three years and plans to start production there in early 2019.
Xiaomi Moulas-li-Crixinan B (MURALIKRISHNANB), India's chief operating officer, said in an email that they would produce components such as cameras, touchscreen modules and fingerprint sensors.
Samsung said it planned to use the Noida plant as an export hub, but it was unclear whether other manufacturers would follow suit. To become a truly global hub for high-value handset manufacturing, India still needs a more stable and business-friendly policy system, industry executives say. India is known for its draconian regulation and sudden shift in industrial strategy.
Talen Tack, deputy head of technology research firm Counterpoint, said India also needed better workforce training. Xiaomi's Muralikrishnan said bringing the entire electronics manufacturing ecosystem into India would be a huge challenge. He added: ' Building the expertise of local high-end design flagship products will also be a big step for the local industry.
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Apple, for example, has not moved its high-end iphone production by assembling two low-cost handsets at the Wistron of Bangalore, a technology hub in southern India, because India has little demand for Apple's high-end iphone, and it has resisted pressure from the government to shift more production from China. Smartphones have become India's manufacturing highlights | Local manufacturers begin to rise