Karnataka govt. unveils digital grievance portal for gig workers

 India will have to maintain a balance between developing home-grown players and allowing continued Chinese investments and operations in the electronics industry

India as a global manufacturing hub. And gov scheme

The launch of the ‘Make in India’ project in 2014, and later the Production Linked Incentives (PLI) scheme to attract domestic and foreign capital, are supposed to be a part of this agenda. 

The Bharatiya Janata Party’s election manifesto 

had three pages dedicated to manufacturing ambitions across different sectors. 

PLI And BUDGET 

The Union Budget for 2024-25 provides a big fillip for the PLI scheme for large-scale electronics manufacturing through the allocation of ₹6,125 crore, 

an increase from around ₹4,499.04 crore in the 2023-24 Budget (₹4,489.46 crore as per revised estimates). 

research and development in the electronics and IT

The government’s focus on building expertise within the country is also visible in the allocation of ₹1,148 crore to research and development in the electronics and IT sectors, up from ₹600 crore in the 2023-24 Budget (₹1,000 crore as per revised estimates).

‘Make in India’ and China’s presence

Chinese smartphone companies को सबसे ज़्यादा फ़ायदा 

Interestingly, one of the biggest beneficiaries of the ‘Make in India’ project in the electronics industry are Chinese smartphone companies. 

Their operations in India have spanned a decade, during which they have become dominant market players. 

Top 4 in top 5 

According to the International Data Corporation’s Worldwide Quarterly Mobile Phone tracker, four of the top five best-selling smartphone brands at the end of 2023 were Chinese, with a combined market share of slightly over 50%.

Indian are largest user

That Indian consumers are one of the largest users of smartphones with the android operating system (whose market share as of 2023, is about 70%) 

has worked to the advantage of these companies.

Chinese app

Chinese brands contain a range of applications catering to the diverse Indian tastes. 

कैसे कैसे करके अपने व्यापार को ये बढ़ा पा रही है 

These companies have expanded their production with active support from central and State governments. 

Well-thought out strategies in sales, aggressive marketing, calibrated customer segmentation and brand-building, sponsorships of popular culture entities, celebrity endorsements, and smart advertisement campaigns have powered their operations in India. 

They have penetrated beyond metropolitan regions, becoming easy reference points for Indian consumers.

चीनी कंपनियाँ भारत-चीन द्विपक्षीय संबंधों में उतार-चढ़ाव का सामना करने में भी सक्षम 

Chinese companies have also been able to withstand the troughs and crests in India-China bilateral relations, until the Galwan valley incident in 2020. 

different ways to control Chinese products 

Indianise’ their operations and management in different ways 

In addition to the increased scrutiny of Chinese investments for not adhering to tax-related compliances, the government is also seeking to ‘Indianise’ their operations and management in different ways: 

some other step taken by gov 

• induction of Indian equity partners in local operations;
• 
  
•  appointment of Indian executives to top roles; 
• 
  
• involving Indian contract manufacturers for production and assembly; 
• 
  
• expanding exports from India, and hiring only local distributors.

long-term strategy  

New Delhi’s directive underscores the long-term strategy of creating 

• a robust network of indigenous manufacturers of sophisticated, 
• precision devices. 

This approach means we learned 

 how China developed its own home-grown supplier companies, which have now expanded their operations into SouthEast Asia.

Attempts at some Indianisation

Tata Electronics as a contract manufacturer of smartphone 

The entry of Tata Electronics as a contract manufacturer of smartphone devices is a noticeable example of growing Indianisation. 

It began by taking over the India operations of Wistron, and have covered much ground in their negotiations to acquire Pegatron, both Taiwanese suppliers for corporations including Apple.

Chinese smartphone companies have have streamlined their structure by 

• introducing separate sales 
• marketing operations for each individual brand, 
• teamed up with domestic manufacturers to claim benefits of the PLI scheme,
•  and are now increasingly seeking equity partners. 

This illustrates their adaptability to survive, evolve, and outlast phases of turbulence, while retaining consumer confidence. The promise and the potential in the sheer size of the Indian market, encourages this approach and a willingness to prepare for the long haul. However, while the Indian government ploughs on with measures to dilute and limit Chinese involvement — this includes attracting Taiwanese investments — there remain serious constraints.

Manufacturing of all smartphone components entirely in India

 along with a robust supplier network, requires development of ancillary industries, clusters for technological knowledge-sharing, uninterrupted power and water supply, and better working and living conditions for the workforce. 

India possesses none of these at scale at the moment. Chinese companies also remain reluctant to share technology without clarity on their equity participation.

Ground reality

ease visa norms for Chinese technicians 

The push by India’s Ministry of Electronics and Information Technology and Ministry of Commerce and Industry to ease visa norms for Chinese technicians, within days of the new government taking office,

 underscores the difficulty for the government in conditioning and controlling both Indian and Chinese companies in the short to medium term. 

Foreign Direct Investment from China  

The Government’s Economic Survey, released a day before the Budget advocates promoting Foreign Direct Investment from China rather than being fixated on the China Plus One Diversification strategy of major multinational companies.

delicate balance between

Delhi will need to maintain a delicate balance between developing home-grown players and allowing continued Chinese investments and operations of Chinese companies in order to achieve its manufacturing objectives.

Source the hindu