India’s Made in India smartphones manufactured under the Atmanirbhar Bharat scheme seek new heights
Author: Shivam Jha
New Delhi: The Indian mobile industry’s success story underscores India’s capacity to transition from being predominantly import-dependent to emerging as the key player in mobile manufacturing on the global level. As India cements its status as a manufacturing hub for mobile devices, the “Made in India” label has now become synonymous with quality and innovation. As these indigenous smartphones ascend to new heights, they symbolize a transformative journey toward self-sufficiency, economic growth, and technological prowess in the realm of mobile manufacturing. The phrase "seek new heights" implies an aspiration for growth, success, and recognition on a broader scale. This succinct statement captures the dynamic spirit of India's self-reliance initiative in the smartphone industry, signalling a journey towards innovation and global competitiveness.
Made in India mobile phone shipment crossed 2 billion cumulative marks during the period 2014-2022 registering a 23% Compound Annual Growth Rate (CGAR) and is still expected to see a substantial amount of growth in the period 2023-2028. The huge international demand for technology has boosted digital literacy and the government’s push is a major reason for the industry’s growth.
Presently, 71% of the Indian population uses smartphones in India. Also, the average time that an Indian user spends on their smartphone in a single day is 4.9 hours. To communicate more about the industry's growth, we should investigate how brands have been dominating the market and how they target their audience. Also, how their sales work and what segments they specifically dominate resulting in a clear understanding of India’s “Made in India” smartphone growth.
In a highly competitive market with numerous brands and the emergence of sub-brands, India's mobile industry has witnessed significant shifts. Android smartphones dominate the landscape, constituting 96.45% of Indian users, while iOS holds a 3.55% share. To maintain market share, brands must strategically assess their target audience and incorporate value-for-money features. With Android phones spanning a wide price range from 10k to 1.6 lacs, brands regularly launch products to assert their presence and compete for consumer attention.
In contrast, iOS devices, being Apple's premium offerings, target the business elite with higher prices. Apple commands a substantial 63% market share in the luxury mobile market in India. The elevated cost of Apple's components and repairs, compared to Android, contributes to its limited dominance. Since 2014, the Indian market has witnessed global and Indian brands dominating different segments. Indian brands, initially dominating the budget segment, faced challenges as global competitors offered more features, leading to closures or reduced growth.
Under the Atmanirbhar Bharat initiative, global brands actively contribute to the growth of the Indian mobile industry. This involvement extends to reaching individuals in non-digitalized areas, contributing to the industry's expansion. The imposition of a 22% import duty on smartphones sold in India, coupled with additional customs and social welfare charges, affects the pricing of imported devices.
However, the localization of manufacturing has led to more cost-effective products, boosting sales, and expanding the Indian smart phone market.
The positive outcomes have prompted brands like Google to plan manufacturing in India by 2024, and others are establishing more manufacturing units by 2028. These developments underscore the significant impact of both global and domestic efforts on the growth and sustainability of the Indian mobile industry.
The recent statement of Ashwini Vaishnav (Minister for Railways, Communications, Electronics & Information Technology, Government of Bharat) that 99.2% of smartphones used by citizens of India are “Made in India” products under the initiative Atmanirbhar Bharat, which is 20 times growth since 2014, displays the aspirations of New India scaling newer heights and celebrating the accomplishments of the industry. A moment of pride as it creates a course towards self-reliance in the technology sector.
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The exports of agricultural commodities from March to June 2020 shot up by 23.24 percent on-year to Rs 25,552.7 crores.
As the economy comes to a standstill amid the coronavirus-led lockdown, India’s agriculture sector has taken the baton of economic growth in its hands. The exports of agricultural commodities from March to June 2020 shot up by 23.24 percent on-year to Rs 25,552.7 crores, according to the Ministry of Agriculture & Farmers Welfare. The government said that self-reliant agriculture is critical for the goal of an Atmanirbhar Bharat and for this, agricultural export is extremely important as besides earning foreign exchange for the country, the exports help farmers, producers, and exporters to take advantage of the wider international market and increase their income.
The surge in exports has also resulted in increased production in the farm sector by increasing coverage area and productivity. The share of India’s agricultural exports and imports in the world agriculture trade in 2017 was 2.27 percent and 1.90 percent, respectively. Even during the difficult time of pandemic lockdown, India took care not to disturb the world food supply chain and continued to export, the government said.
Ministry of Agriculture has prepared a comprehensive action plan for the promotion of Agri trade; the twofold approach focuses on boosting Agri Export with emphasis on value addition and action plan for Import Substitution. Recently, the Agriculture sector has witnessed a series of reforms, giving more choices to the farmers to sell their produce at competitive rates.
To mention a few, the Export strategy focuses on the export promotion of fast-evolving niche markets of Wellness food/ Health-conscious food/nutraceuticals, Development of “Brand India” in campaign mode to help penetration into new foreign markets and of new products which automatically translates into higher value realization, Gulf countries have been identified as focus destination to increase the market share which is a strong market for India though presently India caters to only 10-12% share of their total imports. A product-market matrix has been made containing a list of products of strength that could be expanded in new geographies and a list of known markets which can be introduced with newer products.
At the behest of the Department of Agricultural Cooperation & Farmers’ Welfare, Ministry of Agriculture, product-specific Export Promotion Forums have been created to lead Agri exports to new heights. Each Export Promotion Forum shall be having exporters of the related commodity as its members along with official members representing concerned Ministries/Departments of the Central and State Governments. Chairman APEDA shall be the chairman of each of these forums. The forums will meet at least once every two months, to discuss recommendations on issues pertaining to the export.
The recommendations of the forum will be placed in the product committee / Authority of APEDA. The Forum will keep in close contact with the concerned organization of the Ministry of Agriculture such as MIDH, Extension, NPPO, etc., DGFT, Ministry of Civil Aviation, MoFPI, etc. to further the interest of agricultural export.
