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What is the news?
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- As of the end of the decade 2014-2024, India is the world’s second largest producer of mobile phones. In 2014, the sector was 78% dependent on imports; today, it is 97% self-sufficient.
Indian Mobile Phone Revolution: Import Reliance to Manufacturing Powerhouse
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- India’s mobile phone business has thrived.
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- In 2014, 78% of mobile phones were imported. India was the world’s second-largest mobile phone producer in 2014–2024, with 97% self-sufficiency. To understand what drove this success story, examine this astonishing shift.
A Transformational Decade:
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- India’s mobile phone business turned around due to strategic initiatives and market factors. The 2015 “Make in India” programme was crucial. Tax concessions, subsidies, and simplified regulations boosted domestic manufacturing under this effort. The Phased Manufacturing Programme (PMP) encouraged mobile phone manufacturers to set up shop in the country.
Favourable Ecosystem Beyond Incentives
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- Success goes beyond government subsidies. India’s big, tech-savvy population produced a huge mobile phone market, attracting global manufacturers. A expanding pool of trained labour and component suppliers boosted India’s production hub status.
Benefits Beyond Manufacturing:
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- Domestic mobile phone production has impacted the Indian economy. It has created many manufacturing, logistical, and retail jobs. Technology and creativity have also grown auxiliary sectors, creating a strong mobile phone ecosystem in the country.
Challenges and Way Forward:
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- Despite impressive progress, obstacles remain. Advanced components and manufacturing processes are still imported by India. Developing a strong local supply chain for these essentials requires ongoing efforts. To manufacture phones and invent and build cutting-edge technologies, India needs more research and development funding.
Conclusion:
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- India’s rise from import-dependent to mobile phone leader shows its economic potential. This success story inspires growth in other crucial sectors. India can remain a global manufacturing powerhouse and mobile phone industry leader by encouraging innovation, investment, and talent development.
QuizTime:
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Mains Questions:
Question 1:
India’s mobile phone production has witnessed a remarkable transformation in the past decade. Discuss the key factors that have contributed to this growth and the impact it has had on the Indian economy. (250 words)
Model Answer:
India’s mobile phone production has undergone a significant shift, transitioning from import reliance to self-sufficiency. Several factors fueled this growth:
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- Government Initiatives: The “Make in India” program and Phased Manufacturing Programme (PMP) provided incentives and streamlined regulations for domestic production.
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- Favorable Market: A large and tech-savvy population created a massive domestic market, attracting global manufacturers.
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- Skilled Workforce and Ecosystem: A growing pool of skilled labor and a developing ecosystem of component suppliers further strengthened India’s position as a production hub.
This growth has impacted the Indian economy positively:
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- Job Creation: Manufacturing, logistics, and retail sectors witnessed significant job creation.
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- Ancillary Industries: The influx of technology and innovation spurred the growth of ancillary industries, strengthening the mobile phone ecosystem.
Question 2:
Despite India’s success in mobile phone production, certain challenges remain. Discuss these challenges and suggest measures to address them to ensure continued growth in the sector. (250 words)
Model Answer:
While India has achieved remarkable progress, challenges persist:
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- Import Dependence: India still relies on imports for high-end components and advanced manufacturing processes.
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- Limited R&D: Investment in research and development is needed to move beyond manufacturing and towards innovation and design.
Measures to address these challenges include:
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- Promoting Domestic Supply Chain: Government initiatives and partnerships can foster domestic production of crucial components.
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- Encouraging R&D: Tax breaks and research grants can incentivize innovation by both domestic and foreign companies.
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- Upskilling Workforce: Focus on training programs to cater to the evolving needs of the mobile phone manufacturing sector.
By addressing these challenges and focusing on R&D, India can solidify its position as a global leader in mobile phone production and a hub for cutting-edge mobile technology.
Remember, these are just two examples of UPSC Mains questions inspired by the current news. Feel free to modify and adapt them further to fit your specific needs and writing style. Good luck with your preparation!
Relevance to the UPSC Prelims and Mains syllabus under the following topics:
Prelims:
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- GS1: Economy & Internal Security: While not a direct question, the topic could be linked to broader themes of “Growth of manufacturing sector in India” or “Government initiatives to promote economic development”. Understanding India’s rise in mobile phone production showcases a success story in these areas.
Mains:
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- General Studies Paper II (Governance, Constitution, Social Justice and Administration): This paper could ask about “Government policies and interventions for boosting manufacturing sector”. The Make in India program and its impact on mobile phone production would be a relevant example here.
- General Studies Paper III (Indian Economy): This paper offers the most direct connection. Questions related to “Growth of key sectors of the Indian economy” or “Challenges and opportunities in the manufacturing sector” could be linked to India’s mobile phone production story. You could discuss the rise in self-sufficiency, job creation, and the need to develop a domestic supply chain.
- General Studies Paper IV (Ethics, Integrity and Aptitude): This paper might have a question on “Case Studies on Public Policy”. You could analyze the Make in India program in the context of mobile phone production, highlighting its effectiveness and limitations.
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