India's journey in mobile manufacturing has been a transformative story, evolving from a dependency on imported mobile phones to becoming one of the world’s largest mobile manufacturing hubs. The growth of this sector has been driven by government initiatives, increasing domestic demand, and investments by global and local players. Here’s a look at the history and key milestones of mobile manufacturing in India:

1. Early Days: The 1990s to Early 2000s

Import Dependency:
In the 1990s, mobile phones were a luxury item in India. The first mobile phone call in the country was made in 1995 between Kolkata and Delhi. During this period, all mobile phones were imported, primarily from countries like Finland, Japan, and South Korea.

Market Growth:
By the early 2000s, as telecom services became more affordable, the demand for mobile phones surged. However, India lacked a domestic manufacturing ecosystem, and most devices were imported.

2. Initial Manufacturing Efforts: Mid-2000s

Entry of Global Brands:
Companies like Nokia and Samsung set up manufacturing units in India. Nokia established its first plant in Sriperumbudur, Tamil Nadu, in 2006, marking the beginning of large-scale mobile manufacturing in the country.

Local Brands Emerge:
Domestic brands like Micromax, Karbonn, and Lava started assembling phones in India, though components were still imported. These brands gained significant market share by offering affordable devices.

3. Shift Toward Local Manufacturing: 2010-2014

Rise of Smartphone Demand:
The smartphone revolution began, driven by increasing internet penetration and affordable data plans. This created a significant demand for locally assembled or manufactured devices.

Initial Challenges:
The lack of infrastructure, skilled labor, and component manufacturing capabilities posed challenges to full-scale production in India. Most "manufacturing" involved assembling imported parts.

4. The Turning Point: Make in India (2014 Onwards)

Introduction of "Make in India":
In 2014, the Indian government launched the Make in India initiative to boost domestic manufacturing, including mobile phones. The program offered incentives, simplified regulations, and improved infrastructure.

Entry of Global Players:
Companies like Foxconn, Wistron, and Pegatron, which are key manufacturers for Apple, Xiaomi, and others, began setting up operations in India. Samsung opened the world’s largest mobile factory in Noida in 2018.

Domestic Production Boom:
By 2015, India had 2 mobile manufacturing units. By 2020, this number had grown to over 260, making India the second-largest mobile phone manufacturer in the world after China.

5. Recent Developments: 2020 and Beyond

PLI Scheme:
The government introduced the Production-Linked Incentive (PLI) scheme in 2020 to encourage large-scale manufacturing of mobile phones and components in India. This has attracted major investments from global players like Apple and Samsung.

Local Component Manufacturing:
Efforts are underway to develop a robust ecosystem for components like displays, batteries, and chipsets. Companies like Dixon Technologies and Bharat FIH are contributing to this ecosystem.

Export Growth:
India has emerged as a significant exporter of mobile phones, with brands like Apple and Samsung using the country as an export hub.

6. Key Players in India’s Mobile Manufacturing

Global Companies:

• Samsung: Operates a massive facility in Noida.
• Apple: Manufacturing iPhones through partners like Foxconn, Pegatron, and Wistron.
• Xiaomi, Oppo, Vivo, and Realme: Significant presence with local assembly lines.

Indian Companies:

• Micromax, Lava, and Karbonn: Once dominated the market but are now focusing on reviving operations through local production.
• Dixon Technologies and Bharat FIH: Major players in contract manufacturing.

7. Challenges and Opportunities

Challenges:

• Dependence on imports for key components like semiconductors.
• Competition from established manufacturing hubs like China and Vietnam.

Opportunities:

• India’s large domestic market provides a steady demand for mobile phones.
• Government policies and rising labor costs in China are encouraging companies to shift production to India.

8. Future of Mobile Manufacturing in India

India aims to strengthen its position as a global manufacturing hub through continued policy support, infrastructure development, and innovation. The focus is on achieving self-reliance in components and establishing India as a leader in smartphone exports.

Conclusion

The history of mobile manufacturing in India reflects the country's journey from being an import-dependent market to becoming a global manufacturing powerhouse. With sustained efforts and innovation, India is poised to play a pivotal role in the global electronics supply chain.