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In 2022–2023, India’s mobile manufacturing reached 31 crore units

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(Commonwealth) _ In the Union Budget 2023 presentation, Finance Minister Nirmala Sitharaman highlighted the significant growth of mobile phone production in India over the past few years. She announced that India is expected to produce 31 crore mobile phones by the financial year 2022-23, which is a substantial increase from 5.8 crore mobile phones produced in 2014-15.

The Finance Minister credited the growth of mobile phone production in India to various government measures, including the Phased Manufacturing Plan (PMP). The PMP was introduced in 2016 to encourage the domestic production of mobile phones and reduce India’s dependence on imports.

As a part of the PMP, the Indian government introduced a series of incentives for manufacturers to set up production facilities in India. These incentives include reduced duties on imported components used in the production of mobile phones, tax holidays, and subsidies for setting up manufacturing plants.

To further support the growth of mobile phone production in India, the Finance Minister announced a reduction in customs charges on the import of specific components used in the production of mobile phones. This reduction in customs duty is expected to make it easier and more affordable for manufacturers to import the necessary components and produce mobile phones domestically.

The growth of mobile phone production in India has had a significant impact on the Indian economy. The Finance Minister noted that the value of mobile phone production in India has increased from 18,900 crore in 2014-15 to over 2.75 crore crore in the past financial year, demonstrating the significant potential for growth in this sector. Overall, the Indian government’s efforts to promote the domestic production of mobile phones have been successful in creating a more self-reliant economy and reducing India’s reliance on imports. The reduction in customs duty on specific components is expected to further boost mobile phone production in India and contribute to the growth of the Indian economy.

In addition, Sitharaman said that the central government will waive the customs charge on certain imports of inputs and parts, such as camera lenses, and would extend for another year the reduced duty on lithium-ion cells used in batteries. In recent years, India has emerged as a significant player in the electronics industry, attracting international corporations to set up manufacturing facilities in the country. The Finance Minister’s remark about India’s increased production of mobile phones comes as international corporations actively promote India as a world electronics powerhouse to rival China.

Several smartphone producers, including Xiaomi, Samsung, and Apple, have established manufacturing facilities in India. Apple, in particular, has been increasing its manufacturing presence in India since 2017, when it started producing older iPhone models in the country. In 2021, the company began assembling its premium iPhone 14 model in India, further establishing its manufacturing foothold in the country.

The Indian government’s initiatives to promote domestic manufacturing, such as the Phased Manufacturing Plan, have contributed to India’s attractiveness as a manufacturing hub. The government’s focus on creating an enabling environment for electronics manufacturing, including incentives such as tax breaks and subsidies, has encouraged multinational corporations to set up manufacturing facilities in India.

Apart from mobile phones, India is also emerging as a significant player in the production of other electronics such as televisions, laptops, and other consumer electronics. This growth in the electronics industry has contributed to the growth of India’s economy and created employment opportunities for its citizens.

India’s emergence as a significant player in the electronics industry is expected to have long-term benefits for the country’s economy. The increase in domestic manufacturing has reduced India’s dependence on imports and created a more self-reliant economy. The growth in the electronics industry is also expected to lead to the development of ancillary industries and create a significant number of jobs in the country.

According to Union Minister for Trade and Industry Piyush Goyal, Apple aims to increase its manufacturing presence in India from the current 5-7% to 25%. This move is a significant step towards Apple’s goal of expanding its global manufacturing capabilities beyond China and reducing its dependence on the country.

The Indian government’s initiatives to promote domestic manufacturing, such as the Phased Manufacturing Plan and the Make in India campaign, have been successful in attracting multinational corporations to set up manufacturing facilities in the country. Apple, along with other electronics manufacturers, has been taking advantage of these initiatives to establish its manufacturing presence in India. In addition to the announcement about Apple’s plans for manufacturing in India, the Finance Minister also declared changes in customs duties on specific items. Customs tax on parts of open cells of TV panels will be reduced to 2.5%, which is expected to reduce the cost of production for TV manufacturers and encourage domestic production.

However, the customs duty on kitchen electric chimney has been increased from 7.5% to 15%, which is expected to make these products more expensive for consumers. The increase in customs duty is likely to protect the interests of domestic manufacturers of kitchen electric chimneys by making imports less competitive.

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