The Indian Cellular and Electronics Association (ICEA) is on track to meet its target of exporting Rs 1 lakh crore of mobile phones by 2023. According to Pankaj Mohindroo, Chairman of ICEA, in the first nine months In the current financial year, the organization has already exported Rs 60,000 crore worth of mobile phones.
One of the main factors contributing to this success is the high percentage of “Made in India” phones. The organization says only 1% of cellphones are imported, with the remaining 99% being manufactured domestically. However, a downside is that this has led to a gray market worth Rs 10,000-12,000 crore for the 1% of imported phones.
To address this issue, the ICEA requested the removal of unstructured rights that crept on key inputs. In addition, an additional expenditure of Rs 10,000 crore under the special program for component manufacturers will extend support to the component industry.
Vietnam is a fierce competitor in the electronics manufacturing industry, with electronics exports valued at around $130 billion and an added value of $30 billion. Vietnam also has an enviable structure of free trade agreements with almost the whole world.
Manish Sharma, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), also stressed the importance of focusing on the electronics industry. He said the entire electronics industry is learning from the developments in the mobile manufacturing industry and the approach of the next 3-5 years should ensure that all consumer electronics are assembled in India. He also said that recent announcements of PLIs (production-linked incentives) have encouraged consumer electronics assembly in India.
Sharma also said there is a need for a broader view to look at the global opportunity and India needs a long term view for competitiveness. He cited the fact that India only consumes eight million air conditioners, while China consumes 50 million, highlighting the possibility of unlocking high demand in India.
In conclusion, the Indian electronics industry is making significant progress in exporting mobile phones and is on track to achieve its target of exporting $1 million worth of mobile phones by 2023. However, there is need to think on a larger scale.