Tuesday, October 28, 2014: Prime Minister Narendra Modi’s ‘Make-in-India’ campaign has finally started taken a complete shape to boost the manufacturing sector in India as latest reports reveal that India’s fourth-biggest smartphone maker Lava is likely to become the first mobile handset company which will start domestic production in the country, shifting their manufacturing unit from China.
The company is famous for their Lava and Xolo smartphones and they are planning to spend around Rs 5,000 million in next three years for local operations. The company is planning to shift most of or the entire production base from China to India. Lava will start assembling its devices in its Noida plant from this April. This plant presently is into repairs only. In a conversation with The Economic Times, chairman and managing director of Lava International, Hari Om Rai, said that the company is in a process to finalise six places in three states to start manufacturing of the handsets. The company is also receiving 25 per cent subsidy from the central government and some state governments are offering VAT free operations too.
India is still not very popular among handset makers as a manufacturing base as components are not easily available and there are other issues too. A few days ago Nokia’s Chennai plant was shut down because of a tax dispute. But the recently launched ‘Make-in-India’ campaign has come forward with new hope for creating jobs, better investment and more growth. China is also facing issues due to rising cost of labour and that’s why India is rising as a prospective alternative to China, as the country is a pool of talent and employment opportunities.
Rai added that prospects for India are looking better as land is easily available at right price and clearances can also be received faster. Presently Lava has a software-related research and development unit in Bangalore. Mobile manufacturing is also getting a boost in the country from the Indian Cellular Association which is promoting the cause and is involved in talks with state governments like Rajasthan, Uttar Pradesh and Andhra Pradesh for land allotment.
