New Delhi: India is thinking of the big change in the smartphone industry. The government has announced a ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS) to promote domestic mobile phone manufacturing and make Indian companies make their own smartphone brands.
The Union Electronics and IT Minister Ashwini Vaishnaw has stated that India may witness three indigenous smartphone manufacturers in the near future in a span of 10-14 months. The companies are being encouraged to use their own idea for designs and the technology of the smartphones so that they do not just duplicate existing designs.
From “Made in India” to “Designed in India”
India has now emerged as an important manufacturing hub for global smartphone manufacturers for years. Production of various phone brands, including Apple, Samsung and others, has been growing in the country in recent years. But, a significant portion of the technology, design and IP rights of these devices remain restricted to foreign companies.
The new scheme is designed to do that.
MPMS proposes to get Indian companies to create Indian-designed smartphones with Indian companies’ ownership of the design and IP. It could be a step towards India becoming not just a smart phone assembler, but a manufacturer of smart phone products and technology.
More Indian Brands Could Mean More Competition
With the introduction of new mobile brands from India, the competition in the market might go up. Potential Indian players are to be expecting to target various segments such as affordable, premium and super-premium smartphones, the government had said.
Eventually, this may actually lead to an increase in choice for consumers, new developments, and increased competition on the price front. Indian businesses could also be more mindful of features that would appeal to local users, including longer battery life and wider availability of local language options, as well as more competitively priced 5G smartphones.
But the creation of a successful smartphone brand isn’t going to be an easy thing to accomplish. Indian firms will need to face competition from existing brands with well-established distribution channels and marketing budgets as well as a loyal base of customers.
A Bigger Manufacturing Opportunity
The scheme can further enhance the electronics value chain in India. The more value chain components are manufactured or sourced in the country, the more value could be retained in the country for every smartphone sold.With the addition of more value chain components, the country could retain an increasing amount of value from every smartphone sold.
The government is also seeking to bring more manufacturing work in from foreign technology giants. In a hint at the possibility, Vaishnaw has said Apple might be looking to beef up its presence in India beyond the iPhone market, and Google could potentially move more of its export-centric device manufacturing from China to India as well.
What India’s Smartphone Future Could Look Like
With the plan succeeding it is possible that the smartphone industry in India can grow beyond just being a manufacturing and assembly point. It may turn into a site for the design, development, manufacturing and export of smartphones.
The first significant challenge will be faced in the coming 10-14 months when the proposed Indian brands are likely to assume their shape. If these companies can do what they propose to do in terms of competition and good design, good technology and that scheme could be a very important step in making a strong industry of the smart phones under the Indian umbrella.
Clearly put, India is not merely aiming to manufacture smartphones for the world, it’s striving to create smartphone brands of its own.
