Sops for phone parts production on cards
component sub-assemblies that go into making a mobile device, a senior official told ET. This is part of a big upcoming incentive scheme to develop a local ecosystem for electronic components.
Sops will be linked to a combination of production, capex and employment generation, given the government's renewed focus on job creation. «This will set the new template for the manufacturing sector,» said the official.
China's value-add is currently in the range of 30%. India's target is to have 25-30% value add in about seven years, the official added.
Leader in making 3 components
India has achieved significant scale in manufacturing of mobile phones in the past 10 years and is working to deepen value addition and widen focus to include IT hardware, servers and chips.
New Delhi hopes to gain from a major shift of the world's electronics supply chain from countries such as China. Some of the sub-assemblies identified include cameras, printed circuit boards, speakers and mikes, display and chip sub-systems. The idea is to focus on the end-to-end ecosystem in the sub-assemblies, instead of having an open-ended component scheme.
«We think, of the 12 sub-assemblies, we will be world leader in three, and a dominant player in around five,» the official said.
Mobile phone manufacturing in India in value terms jumped 21-fold in the last 10 years to Rs 4.1 lakh crore in FY24, as government policy measures such as production-linked incentives (PLI) played a critical role in attracting global players to boost local production,
