According to a joint strategy document by India Cellular and Electronics Association (ICEA), and E&Y, India has an unprecedented opportunity to establish itself as an alternative destination for mobile phone manufacturing and become an export hub as global giants are looking at de-risk manufacturing from China in the post-Covid-19 era.
The document has outlined a three-phase ‘Restart, Restore and Resurgence’ strategy to help India achieve exports of $100 billion in mobile phones and nearly $ 40 billion in components by 2025. It has also been shared with government authorities.
Further, ICEA said that the plan aligns closely with the government’s National Policy on Electronics (NPE-2019) and is propelled by the Production Linked Incentive (PLI) scheme. The strategy document has devised a detailed plan for companies that can serve advanced economies and developed markets, such as North America, Europe, developed Asia and Middle East, which have till now, remained out of reach for India’s mobile exports, ICEA added.
The document said that India appears to have all necessary ingredients to encourage mobile manufacturing at scale and boost exports from the country but lacks the policy support to attract lead firms, incentivise production and unveil measures that provide cost competitiveness to industry or help offset the disabilities suffered by Indian firms vis-a-vis Vietnam and China.
According to EY India, 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.