The IAMAI (Internet and Mobile Association of India) has announced that India's domestic mobile manufacturing industry, which is proposed to reach Rs1, 35, 000 crores by 2019, would enhance the employment opportunities of skilled labourers in the country.
According to the reports taken out by the Enixta and IAMAI, India is set to increase its domestic localisation rate from 6.1 percent in 2016 to 25.8 percent in 2019.
The IAMAI expects growth in production of smartphones by 14 percent in comparison to feature phones where the growth rate is expected to increase by 20 percent.
Dr. Ajay Kumar, additional secretary in the ministry of electronics and IT (MeitY) said, "We are happy that the Government of India has extended their support towards the proposed plan of mobile production in India."
"Our focus is to encourage skilled engineers for employment opportunities in the production of hardware and software of mobile produce," he added.
38 new mobile manufacturing units were set-up between September 2015 and October 2016, with manufacturing capacity of 20 million units per month, generating close to 40,000 direct jobs and 1.25 lakh to indirect employment.
The states of Uttar Pradesh, Andhra Pradesh and Telangana have emerged as the mobile phone manufacturing hubs in the country with half of the 38 manufacturing units being established in these states.
For smartphones, the market size of domestic manufacturing in financial year 2019-20 would be Rs.120, 200 crores.
It is estimated that about 96 percent of the mobile phones to be sold in India would be locally manufactured by 2020.
In 2016, the local value addition for smartphones stood at 6.1 percent, largely limited to assembling and packaging of SKD (semi knocked down) units.
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