- India has become a major global hub for smartphone manufacturing under government policies
- The new Mobile Phone Manufacturing Scheme aims to boost globally competitive Indian brands
- Previous schemes increased exports but domestic brands lost market share due to tech gaps
Having turned India into one of the world's largest smartphone manufacturing hubs, the Centre now wants the next phase of policy support to help create globally competitive Indian smartphone brands, Electronics & IT Secretary S Krishnan told NDTV Profit.
The Cabinet recently approved the Mobile Phone Manufacturing Scheme (MPMS), which will succeed earlier production-linked incentive programmes that attracted companies such as Apple suppliers Foxconn, Tata Electronics, Pegatron and Dixon Technologies.
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Krishnan said while those schemes dramatically increased manufacturing and exports, domestic smartphone brands have steadily lost market share as they struggled to keep pace with rapid technological change.
"Indian smartphone brands had a role over the last six or seven years, but their market share has been declining because they haven't kept up with the latest technology," he said.
The government believes the new scheme can address those shortcomings.
"We have learnt lessons from the first scheme. MPMS will be much more focused," Krishnan said.
He noted that India has already transformed its global manufacturing image.
"Today, many of the world's leading smartphones are labelled 'Made in India'. India's perception globally has been lifted because of this."
The next objective, he said, is ensuring that Indian companies emerge alongside global manufacturers rather than remaining contract manufacturers or assemblers.
"We'll try and ensure that Indian brands come up this time."
Krishnan drew parallels with China's electronics ecosystem, which evolved rapidly after Apple established a large manufacturing presence in the country.
"There is no reason why India can't have the success that China has had after Apple built its ecosystem there," he said.
Industry estimates show India now manufactures the majority of smartphones sold domestically while rapidly increasing exports, particularly iPhones. The government's next challenge is increasing domestic value addition through components, design capabilities and homegrown brands.
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