Andhra Pradesh fast emerging hub for handset, component manufacturing

NEW DELHI: Under the leadership of Andhra Pradesh’s Chief Minister N Chandrababu Naidu, the state is fast turning out to be a preferred destination for mobile handset and component manufacturing companies.

According to Pankaj Mohindroo, National President, Indian Cellular Association (ICA) and Chairman - Fast Track Task Force (FTTF), with suitable regulatory interventions and proactive support provided by the state administration in the past 4 to 6 months are the clinching factors to turn investment decisions in favor of the state.

Mohindroo further indicated that the Andhra Pradesh Government's decision to set up a dedicated mobile handset manufacturing facility in Tirupati, the foundation stone of which was laid by the Prime Minister of India, Narendra Modi on October 22, 2015, will be another important milestone to leverage the State's ability to attract further investments into this sector.

“Foxconn has already started operations in Andhra Pradesh for manufacturing brands like Xiomi, Gionee etc. Other important brands like Micromax, UTL (Karbonn) and Celkon would be kick starting their manufacturing operations soon,” commented Mohindroo.

“ICA has been closely supporting AP’s vision to establish the State as a leading global manufacturing destination for mobile handsets and its component ecosystem. Not only are ICA's efforts directed to transform the state into a manufacturing HUB, rather we are also working with the AP Government to set up design centers and incubation centers to establish AP as a truly global scale Mobile Handset manufacturing HUB, based on the 'Make in India' and 'Digital India vision', Mohindroo further reiterated.

The Government of India has set up a Fast Track Task Force (FTTF) to catalyze and re-establish a robust mobile handsets and component manufacturing ecosystem in India by 2019 with the objective to produce approx. 500 million handsets (approx. Rs 300,000 crore in value terms) and generating employment opportunities for more than 15 lakh people.

Mohindroo further hailed the initiatives of the Government of India, such as ‘Make in India’ and ‘Digital India’ under the leadership of Prime Minister of India, Narendra Modi.

“After the launch of Make in India and Digital India movements by our visionary Prime Minister, Narendra Modi and establishment of the Fast Track Task Force, there have been significant improvements in the investment scenario in the Mobile Handset and component manufacturing ecosystem and today we are witnessing most of the global and domestic mobile handset companies setting up or planning to set up manufacturing operations in India, said Mohindroo.

He further added, “Mobile phone manufacturing in 2015-16 will grow by more than 110 per cent compared to 2014-15, the year in which mobile handset manufacturing touched its nadir. Further, even with this robust growth, we will still reach only 12 per cent of our target of 3 lakh crore which we have to achieve by 2019. This is just a beginning,” Mr Mohindroo added.

Shri Venkateswara Mobile & Electronics Manufacturing Hub at Tirupati is expected to create more than 10,000 jobs within a year and is expected to contribute at least 5% of our all-India target of 15 lakh jobs by the year 2019.