Shocking! India's Mobile Exports Likely To Hit Zero

[cirr]

Shocking! India's Mobile Exports Likely To Hit Zero

By CXOtoday News Desk Dec 24, 2014

India may boast of ranking as the third among the top countries for smartphone users, behind only China and the US and is a nation where mobile phones are seeing a boom time. But a report by industry body Indian Cellular Association with the government brings out some startling facts that exports of mobile phones are estimated to crash to zero in 2015.This is indeed shocking considering the government is pushing to make India a hub for electronics manufacturing with ‘Make in India’ program.

“Mobile market grows by 32 percent or to $12 billion (roughly Rs. 76,154 crores) in 2014 but imports take over to occupy three quarters of market. Domestic productions fell by 29 percent. Exports may crash to zero in 2015,” according to the report.

Exports of mobile phone have been declining after touching a peak of Rs. 12,000 crores in 2012. The export crashed by 70 percent from Rs. 11,850 crores in 2013 to Rs. 2,450 crores in 2014 and further estimated to be nil next year in absence of corrective measures, the report said.

The report mentioned shut down of Nokia’s mobile phone plant in Tamil Nadu due to tax dispute with government during the year as a factor in decline of exports.

India’s electronic mobile market is dominated by imports and mobile phone exports provided some cushion in burgeoning trade deficit. In 2013-14, government faced trade deficit of over Rs. 49,041 crores in telecom segment.

“Export of electronics is almost negligible. The only sector which has reasonable manufacturing and export was mobile sector. In fact, during 2008-2012 production was nearly matching India’s demand by volume,” ICA told PTI.

At the same time import of mobile handsets in the country is continuously rising. In 2015, when export from India is estimated to be zero, import of mobile phones may be worth Rs. 75,750 crores. The mobile phone import has increased from Rs. 34,600 crores in 2012 to Rs. 58,550 crores in 2014.

“It is extremely unfortunate that the torch bearer of India’s IT and telecom exports has been snuffed out. We are, however, confident that with the resolve of our Prime Minister to establish India as a global manufacturing hub, this situation will be reversed,” ICA National President Pankaj Mohindroo told the news agency.

ICA suggested series of measures including 10-year tax holidays and tweaking of some other taxes to promote mobile manufacturing to achieve 25 percent share in global mobile manufacturing by 2019.

“This can translate into additional jobs creation of more than 1.3 million people to yield an annual industry turnover of Rs. 1.5- 3 lakh crores. The imports can dwindle to just 10 percent of the market as compared to over 60 percent now,” said the report.

Shocking! India's Mobile Exports Likely To Hit Zero - CXOtoday.com

 

[Beast]

I told the Indians before, those so called Micromax are just assembling Shenzhen made circuit board and parts and even the plastic are likely made in China customize according to Indian customer needs.

Consider they have to re export, their price is likely more expensive than China Xiaomi, Huawei and Lenevo one. They have zero export potential. Only Indian nationalistic people who buy it solely based on loving of their India.

 

[Chinese-Dragon]

I told the Indians before, those so called Micromax are just assembling Shenzhen made circuit board and parts and even the plastic are likely made in China customize according to Indian customer needs.

Consider they have to re export, their price is likely more expensive than China Xiaomi, Huawei and Lenevo one. They have zero export potential. Only Indian nationalistic people who buy it solely based on loving of their India.

They can take credit for assembling our devices if they want. As long as we are paid, I couldn't care less.


Was 'Indian innovation' Aakash 2 tablet made in China? - Economic Times


NEW DELHI/BANGALORE: The much-publicised world's cheapest tablet, Aakash 2 launched by President Pranab Mukherjee on November 11, may have been a cheap import from China, embellished with some applications from IIT Bombay, and not an Indian innovation that it was made out to be.

Documents in possession of ET show that about 12,000 devices (A13 model designed by AllWinner Tech of China) were procured by Datawind, the supplier selected by IIT-Bombay, which is implementing the Aakash project on behalf of India's ministry of human resources development. This was done just weeks before the launch date.

 

[karan21]

I told the Indians before, those so called Micromax are just assembling Shenzhen made circuit board and parts and even the plastic are likely made in China customize according to Indian customer needs.

Consider they have to re export, their price is likely more expensive than China Xiaomi, Huawei and Lenevo one. They have zero export potential. Only Indian nationalistic people who buy it solely based on loving of their India.

First of all Micromax is one of the top 2 Phone brands in India. Yes they are mostly Chinese made phones, but India has never been a phone manufacturing hub.

The only reason Nokia established the plant in India, is because it had a considerable market share. With the erosion of Indian market share even the Nokia is out of business in India, hence the plant is closed.

The electronics sector has only recently gotten support from Indian government. The govt is now keen on getting investments in this sector and we will get a lot of them. Saying that Micromax has zero export potential is simply, outrageous comment of something you have no idea about. Hold on and well see how things go for electronics sector in India.

 

[xyxmt]

Let the whole world leave menufacturing to Chinese, you cant compete with them so join them.,

 

[sms]

They can take credit for assembling our devices if they want. As long as we are paid, I couldn't care less.


Was 'Indian innovation' Aakash 2 tablet made in China? - Economic Times


NEW DELHI/BANGALORE: The much-publicised world's cheapest tablet, Aakash 2 launched by President Pranab Mukherjee on November 11, may have been a cheap import from China, embellished with some applications from IIT Bombay, and not an Indian innovation that it was made out to be.

Documents in possession of ET show that about 12,000 devices (A13 model designed by AllWinner Tech of China) were procured by Datawind, the supplier selected by IIT-Bombay, which is implementing the Aakash project on behalf of India's ministry of human resources development. This was done just weeks before the launch date.

Akash is/ was a shitty product and not known either for its functionality or reliability. There must be a big nexus between Data wind and Politicians to feed their greed on Govt subsidy (tax payers’ Money)


Regarding export of Mobile phones, India is not a manufacturing hub for global market. They will think about it in future once they could fulfill local demand.

 

[Alfa-Fighter]

I told the Indians before, those so called Micromax are just assembling Shenzhen made circuit board and parts and even the plastic are likely made in China customize according to Indian customer needs.

Consider they have to re export, their price is likely more expensive than China Xiaomi, Huawei and Lenevo one. They have zero export potential. Only Indian nationalistic people who buy it solely based on loving of their India.

Even iPhone / Mac book air is made in China ,

you manufacture world IT products but not able to produce any decent IT products of your own?

BTW , all mobile phone you make, IPS panel you import from Korea, memory from Toshiba/ Samsung/ Chips form US/ Korea etc. you only assemble nothing else.

 

[cirr]

Even iPhone / Mac book air is made in China ,

you manufacture world IT products but not able to produce any decent IT products of your own?

BTW , all mobile phone you make, IPS panel you import from Korea, memory from Toshiba/ Samsung/ Chips form US/ Korea etc. you only assemble nothing else.

You couldn't be more wrong。

Since it is not my business to educate you，I shall leave you to do some diggings and be “pleasantly” surprised by how complete a supply chain Chinese smartphone makers enjoy within the borders。

Or you can choose to remain the proverbial frog。

PS：“http://global.ofweek.com/” is a good starting place。

 

[Established_1965]

Article is too stupid.

These days phones are assembled they are not manufactured. Apple says "Assembled in China" and not "Made in China" .

Almost all phone companies operating in China have assembly units. China is good in making things but they lack innovating things.

Even iPhone / Mac book air is made in China ,

you manufacture world IT products but not able to produce any decent IT products of your own?

BTW , all mobile phone you make, IPS panel you import from Korea, memory from Toshiba/ Samsung/ Chips form US/ Korea etc. you only assemble nothing else.

Apple products are assembled in China, they are not made in China. There is a lot of difference between Assembled and Made

 

[Alfa-Fighter]

You couldn't be more wrong。

Since it is not my business to educate you，I shall leave you to do some diggings and be “pleasantly” surprised by how complete a supply chain Chinese smartphone makers enjoy within the borders。

Or you can choose to remain the proverbial frog。

PS：“http://global.ofweek.com/” is a good starting place。

yes BTW , you don't much about your own IT company , I know because i deal and know with Chinese assembles day in and out.

mediatek, Samsung memories / Toshiba memories are all made by in their respective countries.... please let me know which companies memory chips you made?

 

[The Headache]

I told the Indians before, those so called Micromax are just assembling Shenzhen made circuit board and parts and even the plastic are likely made in China customize according to Indian customer needs.

Consider they have to re export, their price is likely more expensive than China Xiaomi, Huawei and Lenevo one. They have zero export potential. Only Indian nationalistic people who buy it solely based on loving of their India.

I love my CANVAS more for it's feature, not for nationalism.

 

[Beast]

Article is too stupid.

These days phones are assembled they are not manufactured. Apple says "Assembled in China" and not "Made in China" .

Almost all phone companies operating in China have assembly units. China is good in making things but they lack innovating things.



Apple products are assembled in China, they are not made in China. There is a lot of difference between Assembled and Made

If China lack innovative based of what you mean, you can imagined India is 10 times worst. Lack a strong market based, lack a strong manufacturing chain line. To make an Indian hand phone brand international success and export oriented will be 10 times harder than a Chinese one.

I love my CANVAS more for it's feature, not for nationalism.

Probably, you have not seen a Chinese one yet. I have check the price and spec of all Indian based smartphone. None of them can match the Chinese one offer.

 

[Echo_419]

Shocking! India's Mobile Exports Likely To Hit Zero

By CXOtoday News Desk Dec 24, 2014

India may boast of ranking as the third among the top countries for smartphone users, behind only China and the US and is a nation where mobile phones are seeing a boom time. But a report by industry body Indian Cellular Association with the government brings out some startling facts that exports of mobile phones are estimated to crash to zero in 2015.This is indeed shocking considering the government is pushing to make India a hub for electronics manufacturing with ‘Make in India’ program.

“Mobile market grows by 32 percent or to $12 billion (roughly Rs. 76,154 crores) in 2014 but imports take over to occupy three quarters of market. Domestic productions fell by 29 percent. Exports may crash to zero in 2015,” according to the report.

Exports of mobile phone have been declining after touching a peak of Rs. 12,000 crores in 2012. The export crashed by 70 percent from Rs. 11,850 crores in 2013 to Rs. 2,450 crores in 2014 and further estimated to be nil next year in absence of corrective measures, the report said.

The report mentioned shut down of Nokia’s mobile phone plant in Tamil Nadu due to tax dispute with government during the year as a factor in decline of exports.

India’s electronic mobile market is dominated by imports and mobile phone exports provided some cushion in burgeoning trade deficit. In 2013-14, government faced trade deficit of over Rs. 49,041 crores in telecom segment.

“Export of electronics is almost negligible. The only sector which has reasonable manufacturing and export was mobile sector. In fact, during 2008-2012 production was nearly matching India’s demand by volume,” ICA told PTI.

At the same time import of mobile handsets in the country is continuously rising. In 2015, when export from India is estimated to be zero, import of mobile phones may be worth Rs. 75,750 crores. The mobile phone import has increased from Rs. 34,600 crores in 2012 to Rs. 58,550 crores in 2014.

“It is extremely unfortunate that the torch bearer of India’s IT and telecom exports has been snuffed out. We are, however, confident that with the resolve of our Prime Minister to establish India as a global manufacturing hub, this situation will be reversed,” ICA National President Pankaj Mohindroo told the news agency.

ICA suggested series of measures including 10-year tax holidays and tweaking of some other taxes to promote mobile manufacturing to achieve 25 percent share in global mobile manufacturing by 2019.

“This can translate into additional jobs creation of more than 1.3 million people to yield an annual industry turnover of Rs. 1.5- 3 lakh crores. The imports can dwindle to just 10 percent of the market as compared to over 60 percent now,” said the report.

Shocking! India's Mobile Exports Likely To Hit Zero - CXOtoday.com

The situation is indee worrying in electronics sector but I am confident that slowly & steadily the situation will improve as the new govt has put special focus on manufactring
We already have the building blocks for it all that is needed is political will

If China lack innovative based of what you mean, you can imagined India is 10 times worst. Lack a strong market based, lack a strong manufacturing chain line. To make an Indian hand phone brand international success and export oriented will be 10 times harder than a Chinese one.



Probably, you have not seen a Chinese one yet. I have check the price and spec of all Indian based smartphone. None of them can match the Chinese one offer.

It will be stupid to say that china lacks innovation & as for your other part it is not true we have a massive market & many internstional companies have R&D facilities here along with domestic ones

 

[Beast]

The situation is indee worrying in electronics sector but I am confident that slowly & steadily the situation will improve as the new govt has put special focus on manufactring
We already have the building blocks for it all that is needed is political will



It will be stupid to say that china lacks innovation & as for your other part it is not true we have a massive market & many internstional companies have R&D facilities here along with domestic ones

Strong infrastruture still need to be kick start by India government rather than thinking foreign investment will solve the problem. For example, power shortage and blackout are still quite common in India. This will badly deter many foreign investment even the labour cost is lower than China.

 

[45'22']

I prefer Taiwanese products