Lava advances discussions over a proposed acquisition of Nokia’s Chennai plant

While any resurrection in India’s manufacturing capability – especially in the communications ecosystem – is welcome, I really wonder what the import content is likely to be for, say, handset manufacturing in India.

Without resurrecting indigenous microelectronics output fully – seriously reduced in capacity after the Public Sector Semiconductors Limited in Chandigarh was destroyed in a fire accident in 1988 – I feel that production of any electronics in India would be heavily dependent on its international supply chain, and, probably less cost effective (despite the low prices at which these phones are available).

I remember the last few years I spent in a telecom manufacturing setup – more than 2 decades old then – used to be heavily focussed on how to import our chips and to compensate – how to reduce other import content.

Albeit very dated as knowledge, this question keeps on popping in my mind when I read about manufacturing in electronics in India.

Any views?

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