Since the 2014’s victorious election for the BJP, PM Narendra Modi (1) has been trying to implement the Make in India strategy. A Strategy that involves a revolutionary change for the public of India to appreciate Indian made products. Mahatma Gandhi’s Ideology was to embrace a movement where we value our products, like Khadi and much more, that symbolizes the Indian quality among the people. The Idea still didn’t survive after industrialization, and the Nehru plan to economize India was a reality. Global imports were much more extensive than Indian exports. This shifted the economic level of the US Dollar and Indian Rupee. Rate of products became costly, and survival too became costly as well. The tax rate grew with the GDP’s birth in the 1950s.
The country has always been a victim of economic demoralization. The same reason why the Black Market grew more extensive than ever measuring each flaw in the economic system. The make in India initiative was an idea which wasn’t feasible for a country like India that was low on Industrial occupation. Labor work higher than ever, but the setup for the work didn’t exist. The call for industrial setups with a scheme or incentive was in effect, and thus India slowly developed into an industrial country. Over the years, India has been the manufacturers of many products. From vaccines, medicines to Products which was essential for Home use. This increased India’s standards onto the world market, thus creating an economic value.
The Rise of the Smart Phone Industry in India
In 2007, the world was introduced to an extraordinary; it revolutionized the telephone industry; the iPhone. It came to great reviews and was a device that got sold out quickly. Its dynamic nature and capabilities made way for the other industries to bring out more revolutionary ideas. The smartphone industry became a symbol of the economic rise in the countries that followed suit. Though the smartphone industry was a late-bloomer in India, it still didn’t fail to capture the Market soon, once the consumer wanted such a device full of features that could ease their work.
The Indian Mobile Industry was initiated later on in 2014 in full swing; companies like Samsung, who had already made their mark with Mini-phones, had now started bringing their devices to India. When Modi had tried to implement the ‘Make in India’ movement, companies like Micromax, Lava, and many more had introduced devices for the sole Indian Market. The came Modi’s Digital India project, The Freedom 251 phones, then overthrew the Market for its crazy price at Rs. 200. The phones then introduced were at a range that was affordable for all. This encapsulated the Market even further, and many companies wanted to bring their devices to the Indian consumer’s hands.
OnePlus and more of such top tier class handset makers toppled the Market over the budget phones with high-end features. OnePlus mainly paved the way for all other phone manufacturers to push their phones to the budgetary prices. The Indian Market pushes itself to capture the best markets around it to stabilize and grow the economy. The recent ‘aatmanirbhar’ campaign was initiated by Modi to capitalize on the Indian economy dependent on the Chinese to manufacture the products. The Government had to find out ways to improve their market, and thus, the Idea of the Production Linked Incentive scheme came into effect.
The PLI Scheme Effect
The PLI scheme could be a huge booster for the export of electronic devices. The scheme was of the Idea to provide specific incentives for the formation of factories and manufacturing sectors in India. The Initiative was formally recognized but was fading away with the onset of the COVID-19 pandemic, and doubt arises as to how the consumers would buy devices in a post-pandemic world. Several decisions were made regarding how the scheme could be applied when the industries were facing losses, and could they even recoup their losses if they set up and would the consumers buy their products? Those were the questions that were formulated then.
The October PLI scheme was revalued with an incentive at 4 to 6 percent for India’s foreign industrial development for five years. The scheme is basically like a tender; the companies that sold their handsets above 200 Dollars or Rs. Fifteen thousand in India would be eligible to claim the incentive. This price range would encapsulate the consumers that could afford their devices, and thus India could transition easily digitally. The logical reasoning had to be applied; 16 companies were sanctioned to set up in India and formulation contracts. More of such paperwork had to be accomplished, and by then, they wouldn’t enough time to crack the targets.
The solution to enhance the workforce wasn’t feasible due to the pandemic, close contacts couldn’t be maintained, and the chances of getting sick are high. Indian companies like Micromax, lava signed on to the objective, had guaranteed the target crack by 2021 FY-end. It is also with the Government’s co-operative promise to produce a 5-6% Billion Dollars (approximately) during the five years. India is a country of very patriotic users; the number of users who use Indian branded phone is more at a massive percentage than the one who uses a Foreign Android brand or an iPhone.
The scheme could be one of India’s most celebrated schemes if the regulations are really in place. The export rates by popularity could shoot up to greater heights. This could nudge India’s export rates, boost the economy, and grow India’s GDP in the next few years. The scheme’s success will be solely based on the paperwork and time it takes for these companies to begin production.