India needs to export to be a manufacturing hub say experts

Smartphones lying down besides a laptop

India is one of those countries which offers everything required to manufacture a phone in the country. This is a boon to the companies coming in India as they don’t have to import a single part because the base material is found in the country. This becomes a huge plus for India and that is the reason companies like Apple, Samsung, OnePlus, Xiaomi are having their manufacturing plants in the country. The companies have invested thousands of crores to put up their plants.

Manufacturing in India is most of the times assembling but apart from assembling there are handsets that have been purely manufactured in India. That said, India still needs a long way to go before it can be called as a manufacturing hub. That is because India does not export. India needs to export the base materials like aluminum, copper and such items so that it can become an electronic manufacturing hub. This topic was discussed during the latest ET Telecom’s India Mobile Conclave which took place on Tuesday.

HMD Mobile India’s Country Head, Ajay Mehta was also of the opinion that India has a long way to go before it becomes a manufacturing hub. He said, “There is still a long way to go for India to become a manufacturing hub. Even though the Indian component ecosystem has grown fast, basic components like aluminum, copper need to grow and scale.”

The National Policy on Electronics 2019 is also a huge step towards making India the manufacturing hub. This policy might just bring India and put it into the driving seat. However, it also allows manufacturers to grow their ecosystem with an end to end manufacturing. That being said, Pankaj Mohindroo, Chairman of India Cellular & Electronic Association thinks that the NPE is a work in progress.

He said, “NPE is work in progress and culmination of efforts of 32 ministries. It is a policy created by the industry rather than something that was enforced on the industry. However, we are now coming to the end of macro policy making and it’s time for action now.”

There were other opinions which said that India needs to be built on the policy of exports. This will drive multinational companies to the doors of India. This is the way forward as exports will help India make a lot of money. This will also help in globalization to some extent but the Indian government has to be in support of this. That said, being a manufacturing hub is something the Indian government should concentrate on as it might just turn the table for India’s dropping economy.

-Unmesh Phule

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