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Covid-19 impact may set India's smartphone production back by four years

New Delhi: India’s share in global smartphone manufacturing is about to fall to the levels noticed 4 years back, as factories have halted manufacturing actions due to the lockdown and insist is likely to stay susceptible till May-June, analysts said.

India's contribution to global smartphone manufacturing had jumped to 16 in step with cent in 2019 from 9 in step with cent in 2016, as a number of handset makers lower down output in China or moved out due to the US-China business war and received heavy incentives via the Indian govt to make stronger manufacturing within the nation, in step with a report via market intelligence firm Counterpoint Research.

However, 2020 may see India falling back to the 9 in step with cent degree as an risky economy would hurt call for badly.

“Factories do have spare capability and may quilt up for lost exports via ramping up manufacturing. However, the India call for might be much less as compared to our earlier numbers and this may occasionally have an impact on total manufacturing,” Counterpoint associate director Tarun Pathak told ET.

The analysis firm has lower India’s 2020 smartphone manufacturing forecast via 7-8 in step with cent from 300 million units predicted previous.

China started shedding lustre as the world’s smartphone manufacturing unit in 2016 and its global contribution dipped from 75 in step with cent to 68 in step with cent in 2019. Samsung, in 2019, shut all its smartphone manufacturing in China when its share in that market fell beneath 1 in step with cent . Apple could also be step by step transferring manufacturing out of China, and lengthening it in India, to make the most of tariff advantages beneath the ‘Make in India’ policy, the Counterpoint report said.

However, China’s economy is shifting back towards normalcy because the coronavirus outbreak is beneath keep an eye on in that nation, and smartphone factories are ramping up manufacturing aggressively. This whilst India is in the course of a manufacturing shutdown, which may value the industry Rs 15,000 crore, ET had reported previous.

Also, call for for smartphones isn’t most likely to select up anytime soon. If the lockdown extends additional, India’s global contribution growth may reverse in 2020, experts said.

“The Indian economy might be deeply disturbed as compared to China if the lockdown extends for an extended duration and factories doubling their manufacturing is out of question now,” said Navkender Singh, the analysis director at International Data Corporation (IDC), India.

Handset brands Oppo and Vivo had been expected to double their manufacturing capability in India to 100 million and 50 million units, respectively, this 12 months. Xiaomi had announced construction of its seventh India manufacturing unit in 2019, saying that it will raise the logo’s total manufacturing to 60 million units in 2020.

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