Why Cellphone Production will be a Hot Cake Business?

India has a great scope of increasing cellphone production in the country. Due to high demand this business will be hot cake for many investors. It is interesting to see that big mobile companies  are keen to move their manufacturing center from China to other countries. With technology upgradation big population today is dependent handphones. Below are main reasons why cellphone companies see a big opportunity for the production center at India:


Western Brands Moving out of China – China exported $125 billion in 2019. As COVID-19 Pandemic raised conflict and suspect between China and western countries it brings opportunity for business owners, investors and even Indian government to grasp the opportunity to setup factories and manufacture mobile phones in India.

It may not be easy and possible so fast, inspite of this Government and investors would have to work together to bring technology in India, aggressively develop skill, rapidly setup factories.


Opportunity to replace Chinese mobile with home productions – India imported $13 billion mobile phone in 2018. This would be additional volume Indian manufacturers can look forward to produce within India. However, it may be very difficult for Indian manufacturers to develop products with similar features as China offered with same price range. The timeline to reach that level would be biggest challenge.


Availability of Resource –India’s strength for human resources, land for factory and office setup, construction facility, transportation, electricity and digital support bring good opportunity for the business prospects in mobile manufacturing business. However India still lacks behind the technology, machineries, skills and experience for which Indian would need to take help from other countries like Taiwan, Korea and Japan.


Government Schemes to Support Startup post COVID-19 Pandemic – Government Aatmanirbhar India scheme to bring back economy on track and also increase business opportunities for entrepreneurs can play major role for business startups. Further, easing the registration process and relaxation in taxes from the Indian government can be implemented to support investors. Government should also tie up with countries like Taiwan, Korea and Japan to develop technology and skill development.


Support from US, UK and European Countries – The suspects on China to spread COVID-19 virus worldwide and the conflict between China, US and other western countries due to COVID-19 Pandemic would deflate the business in China. The world is looking India as a replacement to China for production and supply.


Limitations and challenges both should be kept in mind and collective efforts are required to overcome these in order to capitalize the opportunity of cell phone production business in India. While few cellphone companies in India already have been doing assembly production in India it would be a challenge for them to do complete production including parts in India.


Hope that this article is helpful to understand the mobile production opportunity in India. Kindly write your feedback in comment section and also sign up for notifications from our website.

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