Why Cellphone Production will be a Hot Cake Business?

In recent years due to increasing consumers, demand has gone high for the cellphone. With technology up-gradation, dependency on smartphones has drastically increased. India has a great potential to increase cellphone production in the country. To fulfill demand domestically and internationally India can be a game-changer and this is why cellphone production will be a hot cake business.

It is interesting that big mobile companies are keen to move their manufacturing center from China to other countries. Below are the main reasons why cellphone companies see a big opportunity for the production center in India:


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

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


Opportunity to replace Chinese mobile with home productions – India imported $13 billion in the mobile phone in 2018. This would be additional volume Indian manufacturers can look forward to producing within India. However, it may be very difficult for Indian manufacturers to develop products with similar features as China offered with the same price range. The timeline to reach that level would be the 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 the mobile manufacturing business. However, India still lacks technology, machinery, skills, and experience for which Indian may need to take technological support from other countries like Taiwan, Korea, and Japan.


Government Schemes to Support Startup post-COVID-19 Pandemic – Government Aatmanirbhar India scheme to bring back the economy on track and also increase business opportunities for entrepreneurs can play a 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 at 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 on 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 the comment section and also sign up for notifications from our website.

3 thoughts on “Why Cellphone Production will be a Hot Cake Business?

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