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GARWARE COLLEGE OF COMMERCE

A MINI PROJECT REPORT

ON

MAKE IN INDIA INITIATIVE

SUBMITTED BY

PRAJAKTA JAGANNATH JANGAM

UNDER THE GUIDENCE

OF

Prof. SHALINI CHAUDHARY

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ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my subject teach Prof.

SHALINI CHAUDHARY as well as our principal Dr. Geeta Acharya who gave

me the opportunity to do this wonderful project on the topic Make In India

Initiative in Mobile Phone Industry referring Apple and Samsung, which also

helped me in doing a lot of research and I came to know about so many new

things, I am really thankful to them.

Secondly I would also like to thank my parents and friends who helped me a lot in

finalizing this project within the limited time.

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INDEX

Sr. no. Title

1 Introduction
2 Objectives
3 Methodology
4 Main content :

1. Introduction to Make in India

2. Make in India in Mobile phone industry

3. Initiative by Apple

4. Initiative by Samsung
5 Finding problems
6 Suggestions
7 Conclusion
8 References

Introduction

The Indian telecom industry is on a growth trajectory. The launch of the ambitious
‘Make in India’ programme in 2014 has given mobile manufacturing the much-
needed boost and spurred the mobile device industry towards innovation, building
best-in-class manufacturing facilities, skill development and employment. The
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biggest gains for mobile brands can be summed up as - reduced time-to-market

from local production bases to domestic consumers, from finalizing design to local
offset of moulds to printed circuit boards to the assembly lines, to adding locally
sourced accessories and to designing local packing boxes.

‘Make in India’ is expected to create 100 million new jobs by 2022 in the
manufacturing sector alone, and account for 25% of the country’s GDP by 2022.

Under ‘Make in India’ the government introduced time-bound initiatives such as

the Phased Manufacturing Programmed (PMP) to promote use of locally made
components in mobile phones. The success of PMP is expected to take the number
of locally manufactured mobile phone units to reach 520 million by 2019-20.

The government also levied duties on imports of key smartphone components such
as camera modules and PCBs making imports of components expensive while
giving providing a stimulus to local manufacturing. Recently, the government
exempted 35 machine parts from basic customs duty (BCD) to boost mobile
handset production in the country. Currently, there are more than 123 local
facilities that produce and assemble mobile devices and accessories like chargers,
batteries, power banks and earphones in India.

Government of India also responded to a joint plea by members of The Mobile

Association (TMA) and extended the date of mandatory certification and testing of
mobile devices from the earlier notified 1st October 2018 to 1st April 2019. This
was done to accommodate smooth roll-out of the proposed Telecom Engineering
Centre (TEC) Mandatory Testing and Certification of Telecom Equipment
(MTCTE) regime for mobile phones and other devices.
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Emerging Opportunities in Smartphone Manufacturing: 5G and Beyond

Out of India’s 1.3 billion people only half use mobile phones and less than half of
these mobile phone users have a smartphone. While the number of smartphone
users in India is expanding phenomenally, the demand for feature phones has
remained steady. As customers keep looking for upgrading their mobile, the India
smartphone market will continue to see double digit growth as per IDC.

The entry of Reliance Jio disrupted the mobile telephony market and spurred a
price war in low mobile data tariffs. Both smartphone manufacturers and mobile
app developers made good of this opportunity - in early 2018 India bagged the top
spot in app downloads.

5G auctions are expected to be held in the second half of 2019 and this time India
has taken an aggressive stance and wants to be among the early adopters. 5G is
expected to transform the mobile landscape with massive boost in internet speed
and significantly reduced latency. Trials are already underway by Telecom Service
Providers (TSPs), chipset vendors and device manufacturers to roll out 5G
technology by 2020. As per analyst firm Statista, the worldwide market for 5G-
enabled mobile devices is estimated to grow from 2 million units in 2019 and
touch

1.5 Billion units by 2025. This presents a very large revenue opportunity for Indian
mobile device players to bring in innovation in design of 5G devices and scale up
their manufacturing capacities.

5G can become a catalyst for innovation across various technologies like industrial
adoption of Internet of Things (IoT), Artificial Intelligence (AI), Machine
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Learning, and Augmented Reality (AR). This will further open up new channels
for business growth and development for the mobile device industry.

Today, IoT is being adopted by corporates across industry verticals like Retail,
FMCG, Healthcare, Utilities, Oil and Gas, Travel and Transportation etc.

Artificial intelligence and machine learning are being used to gauge consumers’
preferences and deliver tailor-made content to them. Here mobile device players
can collaborate with software/app developers.

Another technology which can drive growth of mobile phone usage is Augmented
Reality. It is the same technology which is used in Pokemon Go. For years AR has
been used mostly in video gaming and military applications but now it is coming to
mobile devices and is expected to go mainstream in industries such as Retail,
Construction, Technical Support and Healthcare.

The boom in usage of smartphones and low-cost data has led to an insatiable
demand for mobile content especially in regional languages. With 234 million
local language internet users, the number is expected to rise to 536 million by 2021
while English users will be only 199 million according to a recent report by
Google and KPMG. This is an excellent opportunity for mobile phone players to
partner with content providers for seamless streaming of audio and video content.
With data privacy

Becoming a major concern, mobile handset manufacturers are stepping up action

to strengthen device security. Facial recognition technology is fast coming up as a
bypass to the legacy password/PIN system. Incorporating these technologies in
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new mobile device models can serve as a major product differentiator for Indian
mobile phone players and give them a distinct competitive advantage.

Objectives
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1. To study how Make in India initiative in mobile industry affected on Indian

economy and Common public.
2. To study the growth of mobile industry in India after the initiative.
3. To focus on how the make in India project encouraged production of Mobile
phones in India.
4. The overall objective of a research is design to explore the position of
mobile phone industry in India after make in India initiative.

Methodology
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This research is related to mobile phone companies in India which is more

concentrated on mobile phone manufacturing companies those are Apple and
Samsung. This research study’s how Make in India initiative has adopted by
these companies for manufacturing mobile phones in India itself. Primary
method contains the observation method by observing some smartphone boxes
and exploring on google about how and why smartphone companies have
adopted India for the manufacturing of smartphones.

The study involves the data collected from the secondary sources. The
secondary data has been collected from journals, Research paper, Newspapers,
Literature review, Websites. An Exploratory research was chosen in order to
develop a profound understanding of the research topic and obtain in depth data
about the research objectives. It contains Some You tubers reference for the
detail information about the Make in India initiative and official government
website of Make in India i.e. http://www.makeinindia.com/ ,
www.pmindia.gov.in and Make in India – Wikipedia.

Make in India
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1) Introduction:

Make in India, a type of Swadeshi movement covering 25 sectors of the Indian

economy,[1] was launched by the Government of India on 25 September 2014 to
encourage companies to manufacture their products in India and enthuse with
dedicated investments into manufacturing.  Three major objectives: (a) to increase
the manufacturing sector’s growth rate to 12-14% per annum in order to increase
the sector’s share in the economy; (b) to create 100 million additional
manufacturing jobs in the economy by 2022; and (c) to ensure that the
manufacturing sector’s contribution to GDP is increased to 25% by 2022 (later
revised to 2025).[13] The policy approach was to create a conducive environment for
investments, develop modern and efficient infrastructure, and open up new sectors
for foreign capital. The initiative targeted 25 economic sectors for job creation and
[1]
skill enhancement,  and aimed "to transform India into a global design and
manufacturing hub"

2) Make In India in mobile phone industry:

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The Indian electronics industry saw growth in the early years of the 21st century,

encouraged both by government policies and incentives and by international
investment. Its key and most resource-intensive segment, the semiconductor
industry benefitted from domestic demand growing briskly. Semiconductors were
required by a large number of industries, including telecommunications,
information technology, industrial machinery and automation, medical electronics,
automobile, engineering, power and solar photovoltaic, defense and aerospace,
consumer electronics, and appliances. As of 2015, however, the skill gap in Indian
industry threatened progress, with 65 to 70 per cent of the market relying on
imports. To promote overall growth and open job opportunities, projected to be
more than 28 million by attracting investments worth $100 billion, the Indian
central government has sought to reduce the country's electronics import bill from
65% in 2014–15 to 50% in 2016 and gradually to a net-zero electronics trade by
2020.[23] India has pursued a two-pronged strategy of import substitution and export
encouragement, through the Make in India campaign coupled with the Digital
India campaign, along with the Startup India[24] and the Skill India campaigns. The
government has fostered an environment conducive to foreign direct
investment (FDI) inflow in a number of ways, as outlined in the National
Electronics Policy[25] and the National Telecom Policy.[26]

 Increased liberalization of Foreign Direct Investment (FDI): 100% FDI

through an automatic route.
 Relaxation of tariffs.
 Establishment of Electronic Hardware Technology Parks (EHTPs) and
Special Economic Zones (SEZs).
 Implementation of Preferential Market Access (PMA).[27]
 Imposing basic customs duties on certain items falling outside the
framework of the IT free trade agreement.
 Exempting import-dependent inputs/components for PC manufacturing from
a Special Additional Duty (SAD).
 Incentivizing the export of certain electronics goods in the Focus Products
scheme under the Foreign Trade Policy.
 Funding 3000 PhD students in electronics and IT across the Indian
universities.
 Imposing an education cess on imported electronic products for parity.
 To offer incentives of up to $1.7 billion by 2020 to electronics hardware
manufacturing entities setting up shops in India to help offset disadvantages
of developing the new industry in the country, a Modified Special Incentive
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Package Scheme (MSIPS) [28] has been initiated. The government has

approved 40 proposals worth over INR9538 crore between January 2014
and June 2015 under the scheme.[29]
 The establishment of Greenfield and brownfield Electronic Manufacturing
Clusters (EMCs) is encouraged under the EMC scheme.[30] Some 200 EMCs
are projected by 2020, of which 30 are already in the process of
establishment.

3) Initiative by APPLE:

Apple’s first manufacturing plant of India Hyderabad in August 2018. Foxconn

Company gives outsource service to apple for manufacturing there
smartphones.

India’s IT Minister Ravi Shankar Prasad displays iPhone XR make

in India.
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4) Initiative by SAMSUNG :

Samsung launched the world's largest mobile factory in July 2018 in Noida. The

new facility was set up with the aim of doubling its capacity for mobile phones in
Noida from 68 million units a year to 120million units a year. Doubling capacity of
production helped Samsung to launch Bestselling Smartphone Series which is
online centric ‘M’ Series.
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The ribbon-cutting ceremony to mark the start of manufacturing at the new

factory was also attended by India’s Prime Minister Shri. Narendra Modi the
President of the Republic of Korea, Moon Jae-in inaugurated the new mobile
phone manufacturing facility in Noida, Uttar Pradesh.
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As a result of “Doubling capacity of production strategy” Samsung launched their

Bestselling Smartphone Series of 2019 which is online centric ‘M’ Series. Which
helped to price aggressively in such a competitive market. Samsung is still giving
tough competition to Chinese Smartphone Vendors like Xiaomi and Realme.

This is retail box of Samsung Galaxy M30 smartphone which launched in

March 2019:
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Problems

1) For implementation of ‘Make in India’, India requires huge amount of

capital or investment.
2) The mobile phone manufacturing companies does not actually manufacture
mobile phones, the just assemble the phones.
3) In India, there are many mobile phone manufacturing companies which
results into more competitiveness.
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Suggestions

1) The mobile phone companies should have to manufacture the parts of

mobile phone sin India itself to give right meaning to make in India policy
e.g. motherboard, battery, camera, display, sensors etc.
2) The mobile phones companies have to study make in India policy by keen
observation and try to improve product quality with fare cost.
3) The companies should have to reduce competition issues in India’s mobile
handset industry.
4) ‘Assemble in India’ to power ‘Make in India’, by which India can create 4
crore well-paid jobs by 2025 and can raise export market share to about 3.5
percent.
5) India should have to focus on ‘Foreign Direct Investment’ (FDIs) for
implementing Make in India initiative in a right way.
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Conclusion

Make in India is an ambitious project, with an aim for sustainable growth of the
economy. With relentless policies towards this end, it is possible to make India the
powerhouse of manufacturing sector in the world. “Make in India” mission is one
such long term initiative which will realize the dream of transforming India into
manufacturing Hub. Start-ups in the core manufacturing sectors are poised to play
a crucial role in the success of “Make in India.” It is observed that the presence of
a sustained and growing demand for mobile phones is a key strength for the
industry. But an established ecosystem for mobile phone manufacturing is badly
needed. MAKE IN INDIA will attract Indian and foreign investors but strong
policy implications is needed to develop an ecosystem. Indian Political Scenario
must be kept in mind. Challenges include inadequacy of feeding industries as most
components / raw materials are currently imported. The import of chipsets and
display are the most crucial components, which seem to be a big gap in the
ecosystem. A cost of manufacturing in China is less in comparison to India.
Chinese mobile phone manufacturers are also looking at investing in Indian
manufacturing. Policy initiatives need to boost investment in mobile phone
production.
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References

1) https://en.wikipedia.org/wiki/Make_in_India#Electrical_machinery
2) https://en.wikipedia.org/wiki/Electronics_and_semiconductor_manufac
turing_industry_in_India
3) https://www.researchgate.net/publication/270507812_MAKE_IN_INDIA
_AND_MOBILE_PHONE_INDUSTRY_NUTS_AND_BOLTS_OF_THE_POLICY
4) http://puneresearch.com/media/data/issues/586fd31569f45.pdf
5) https://economictimes.indiatimes.com/tech/hardware/apple-making-
iphone-xr-in-india-expanding-operations-ravi-shankar-
prasad/articleshow/72223880.cms?from=mdr.
6) https://www.livemint.com/technology/tech-news/how-mobile-
manufacturing-made-the-most-of-make-in-india-1565516698171.html
7) Technical Guruji on Make in India sad story:
https://www.youtube.com/watch?v=YpEYLuXF08Y
8) Sharmaji technical on Make in India- review:
https://www.youtube.com/watch?v=Jd8_zwXZFDs&t=6s
9) Geekyranjit on Make in India – Review:
https://www.youtube.com/watch?v=0_xc6mxObYA&t=180s
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