EkaLore has been releasing analysis on the continuing emergence of Dynamic India affecting global and domestic markets with technology and financial impacts. This release continues the discussion of the steps of Dynamic India to change global perceptions and roles starting in the smartphone market space.
The expansion of iPhone 14, Pixel 7, and Galaxy smartphone manufacturing in India demonstrates longer-term investment in manufacturing and supply chains in a Dynamic India. The Indian government’s incentives for local production were aimed at bringing production technology and build know-how in India.
Preferences of global producers are also being driven by changes in global supply chains. Competitive labor costs and a larger Indian market are enabling manufacturers to bring production to India from other south Asian countries. Covid-19 related disruptions in China along with a highly competitive Chinese market create conditions for considering Dynamic India. The availability of desirable markets and competitive costs combine to make Dynamic India a globally desirable smartphone production site.
India is not only attracting the manufacture of existing smartphones. New products customized for domestic use are being created by Xiaomi. The release of the Xiaomi Civi branded smartphone line in India demonstrates the maturity and value of the Indian domestic market. The targeted smartphone looks to a market space large enough to invest to build a market niche with specific hardware and features to incrementally increase sales. Xiaomi looks to increase its enterprise brand values across multiple product and service market spaces.
Critical to the ambitions of smartphone brands is the ability to quickly adapt products and availability to needs in large markets. Apple, Google, Samsung, and Xiaomi are bringing flagship smartphone product manufacturing (via their own or third-party contracts) to Dynamic India. Critical to these efforts are incremental gains in domestic Indian markets and even larger volumes for export to global market spaces. Increases in inflation in India are still comparable to competitive south Asian locations. The combination of a responsive competitive local Indian market and global cost efficiencies may enable production to continue to be globally competitive.
Dynamic India must successfully invest to sustain a competitive position in smartphones and communications technology. The global market space conditions favorable to current decisions to produce and grow market share in India require expanded investment to be globally competitive to sustain export growth.
Critical know-how and focused skills in production are needed for consumer and industrial device production. These capabilities are gained from performing and improving globally competitive production. Labor mobility is just one component in building capacity. Other countries have shown more investments in education, transportation, and urban living are required. Export economics can drive production facilities, resulting in changes in rural-to-urban employment of workers with better education, and production complexes affecting many parts of society. The transformational benefits of a Dynamic India are the result of multiple investments and many changes.
EkaLore regularly writes about India’s opportunity to advance its competitive position. You can read other articles at www.ekalore.com/india-business
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