Atmanirbhar Bharat? Here's a reality check for Made in India smartphones

Indian manufacturing is either minimal or absent in high tech components like printed circuit boards, chipsets, display and camera modules. These are designed and made in China or Taiwan. Manufacturing in India is limited only to assembly-test-mar...

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The reality check for Made-in-India smartphones, a major focus of official drive on ‘self-reliance’, is that value of components sourced abroad is around 85% of a device’s cost. And Indian manufacturing is either minimal or absent in high tech components like printed circuit boards, chipsets, display and camera modules. These are designed and made in China or Taiwan. Manufacturing in India is limited only to assembly-test-mark-pack facilities. ET breaks down value addition in smartphones. We take a phone that costs Rs 10,000 to manufacture. Himanshi Lohchab reports.

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WHAT’S THE FUTURE?


  • Experts believe a selfsufficient manufacturing ecosystem will need at least a decade. That too, assuming billions of dollars investment in areas like semiconductors
  • India has launched two schemes, aside of the production-linked incentive programme, for component makers
  • But unless companies commit big capital and government gives generous incentives, this will remain a tough challenge
  • Companies like Qualcomm, Mediatek, Samsung can transfer more research and design here
  • That will add more local value but will employ a few high skill people, as opposed to tens of thousands in fabrication plants
Source: Canalys, Counterpoint, ET research
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