Make in India: Chinese handset ecosystem players seek ease of doing business in India

NEW DELHI: Chinese companies in the handset ecosystem space have sought ease of doing business in India that could facilitate their active participation in local manufacturing to achieve Make in India’s ambitious objectives together with Indian counterparts.

"Indian government should come forward to facilitate ease of doing business,” a spokesperson at Chinese embassy’s commercial division spokesperson said, adding that despite the economic slowdown in China, collaboration between the two countries has been growing.

The Chinese ecosystem has succeeded in producing high quality handsets at a low cost, she said, adding that brands like Huawei, Lenovo, Xioami, Oppo and Vivo have become household names in India.

China-based touch panel and component manufacturing company Holitech is also planning its India foray and is currently evaluating market conditions. It is in talks with ecosystem players and the government to start operations in the country.

"We want to establish a full-range manufacturing facility in India and are exploring options and are open to suggestions from Indian players,” Holitech Chief Executive Chen Bingsuan said.

In India, Chinese firms have invested $2.7 million (Rs18.1 crore) in 2015 in the electronics manufacturing segment.

Research firm IDC said that 24 million smartphones were shipped in Q2, 2015 in India, of which 12% were from Chinese handset firms, double from 2014.

"India’s electronics sector aims to garner 25% share in mobile manufacturing worldwide,” Josh Foulger, country head and MD at Foxconn India said.

Lava chief manufacturing officer Sanjeev Agarwal said that there has been increase in manufacturing in 2015.

"By 2017-18, India will fulfil the demand of local sales with full in-house production, and beginning 2018, will go for exports and become global force in electronics sector,” Agarwal added.