Mobile Manufacturers Could Boost Indian Employment Rate

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Critics are worried that India will be unable to achieve the previously projected 10 percent growth rate for manufacturing employment that would serve to boost the Indian economy.

To put the highly anticipated manufacturing employment rate in context, Bloomberg Businessweek reports, “In India, manufacturing accounted for 10 percent of employment in 1960, rising to 13 percent in 2002 before the level began to fall.”

According to the Economic Times (via India Times), “Manufacturing, which constitutes over 75 per cent of the index of industrial production (IIP), declined 3.7 per cent in February as against growth of 2.1 per cent in the same month a year ago.”

Economists believe mobile manufacturers could improve the outlook. Currently, Indian mobile companies outsource much of their mobile phone making to China. Bringing the business back to India would promote necessary job growth within the sector.

A report by Business Insider states, “India with over a billion people is the second largest mobile phone user economy in the world. There are several Indian mobile makers in the country such as Micromax, Lava, Karbonn, Spice, and Celkon. All of them manufacture their respective mobile phones in China and bring them to India.”

As of April 22, Micromax has started manufacturing mobile phones out of Rudraprayag in Uttarakhand. The latest news directly follows the company’s most recent product launch: the Micromax Canvas Doodle 3. Analysts are confident this move will set a good example for other mobile companies that may be reluctant to take the leap.

Micromax has a stronghold in the Indian mobile phone market. The company’s latest move could point to growth for the entire industry.

A recent report by NDTV notes, “Micromax is the second-largest player in both mobile phone and tablet markets in India. The company had 13 percent market share in total mobile phone segment and 16 percent in smartphone market in last quarter of 2013 as per market research firm IDC.”

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