- The Government of India, as per the report, has asked electronics and smartphone industry to submit a list of essential components
- Three new key policies around electronics and components manufacturing eco-system were announced recently
The Government of India (GOI) is planning to airlift essential electronics components from China. A report, published by Reuters, mentioned that China is getting back on the work mode after the extended shutdown.
It is to be noted here that the GOI has recently announced three key policies around electronics, components and semiconductors manufacturing in India. The report also mentions that airlifting of electronics components might take place from Chinese cities including Guangzhou and Shanghai.
Many mobile phone makers have already shut operations in India
Smartphone brands, including the likes of Lava, Vivo, Oppo, Oneplus, Samsung and Xiaomi have already shut manufacturing operations in India citing Coronavirus threat. GOI has announced a complete lock down barring essential services in the country.
While many brands may have stocked up essential electronics components, the supply chain might get hit if the lock down period extends. Smartphone brands, may in turn, find it difficult to meet demands in the upcoming months. It is also to be noted here that April is usually counted as the first month of a new financial year.
The list of components might also revolves around electronics components used by the automotive industries. Some of these imported from China include pressure sensors and smart fuel injectors.
India’s smartphone market second-largest
India, as per a recent Counterpoint Research Report, has surpassed USA to become the second-largest smartphone market in 2019. This, as the report explained, due to the growth of the mid-tier segment where Chinese brands aggressively introduced many flagship-grade features and capabilities to capture demand coming from users looking to upgrade from their first or second smartphone.
Additionally, the online channels became the preferred selling platforms to introduce these products faster into the market. It is to be noted here that four out of top five smartphone brands in India in 2019 were China-based.