Indian small and medium enterprises are seeking a long-term partnership with Chinese entrepreneurs and investors in IT, mobile components and auto ancillaries, said MSME Minister Kalraj Mishra in Guangzhou.
India participated in the 13th China International Small and Medium Enterprises Fair (CISMEF 2016) as the co-host through the ministry of micro, small and medium enterprises (MSME) and the National Small Industries Corporation (NSIC).
As many as 124 small and medium enterprises from various parts of India are participating in the fair.
“The Indian MSME sector is poised for a major leap, driven by the high growth with a high level of innovation and Indian MSMEs seek a long-term partnership with Chinese entrepreneurs and investors, especially in areas like IT and digital, mobile components and automobile ancillaries,” Mishra said at the inauguration of India pavilion at the fair on Monday.
Mishra and Governor of Guangdong Zhu Xiaodan jointly inaugurated the Indian pavilion.
The minister listed out several initiatives to bolster growth of the manufacturing sector in India such as Make in India, Digital India, Start-up India, which have made the world’s economic superpowers to look at India with “a lot of admiration”.
CISMEF, which attracts a number of visitors from China as well as various countries, is expected to provide a huge market opportunity.
Among others, Mishra met Xiaodan, Vice-Minister of Ministry of Trade and IT Xin Guobin. He discussed ways and means to enhance cooperation between SMEs of the two countries.
The minister also expressed concern over the huge trade imbalance and urged Chinese interlocutors to work with India to reduce this deficit in the interest of sustainable bilateral trade.
Chinese phonemakers to explore ‘Make in India’ opportunities
Chinese mobile phone companies with their Indian counterparts will hold three-day joint summit starting October 22 here with around 20 firms having interest in setting up their manufacturing units in the country. “We have seen huge interest of Chinese for making their products in India.
In the upcoming summit, we are expecting large participation. Around 20 mobile phone firms, mostly component suppliers and contract manufacturers, have already expressed interest in manufacturing their products in India,” ICA National President Pankaj Mohindroo said.
Government’s policy and new tax rules have encouraged electronic product manufacturing in the country, mainly mobile phones. Mobile handset manufacturing activity witnessed a staggering approximately 200 per cent growth in value terms during 2015-16 compared to 2014-15.
Manufacturing rose to around $ 9 billion during 2015-16 from $ 3 billion in 2014-15. In volume terms manufacturing grew by around 90 per cent in from 60 mn units in 2014-15 to 110 mn units in 2015-16, according to Indian Cellular Association (ICA).
Some of the big names that started manufacturing in India include Foxconn, Wistron, Pegatron, Delta, Flextronics, Xiaomi, Huawei, LeEco, Vivo and Compal. “We expect new companies like Techno and firms involved in mobile screens, camera, antenna, battery to set-up their plants as we enter in to next phase of mobile manufacturing,” Mohindroo, who chairs Fast Track Task Force (FTTF) on mobile manufacturing, said.