R&D crucial for making India manufacturing hub for mobile handsets: Report

NEW DELHI, Oct 17:For making India a manufacturing hub for mobile handsets, investments in Research and Development are necessary, says a report released by a think tank.
India’s potential lies in addressing the under-served demand of nearly half a billion people, and the constant need for upgradation from the other half, according to Indian Council for Research on International Economic Relations (ICRIER), one of India’s leading think tanks which disseminated their research findings of the study titled “Competition Issues in India’s Mobile Handset Industry” at the India Mobile Congress 2019.
Collaborative steps by the government and industry can help build domestic capacity while maintaining healthy levels of competition, says the report.
The average selling price of phones decreased at a Compound annual growth rate (CAGR) of 0.11 per cent during the same period. A feature mapping exercise included in this report, finds quality improvements across different price bands of mobile phones.
Using data from 2007 to 2018, the think tank report increasing levels of competition across most segments in the market. Of late, the structural estimates have shown a tendency to increase, especially in segments where consolidation is taking place. Antitrust concerns surrounding this shift however are minimal.
Mobile phones have been the key to India’s technology revolution. India is the second largest mobile phone market globally, next only to China.
The industry is projected to contribute 8.2 per cent to India’s GDP by 2020.
At present, the mobile phone market in India is over crowded with over 75 brands and 3400 models. The market is very dynamic; the pecking order of firms is constantly changing with new brands challenging established manufacturers.