The Make-In-India Dilemma: What's Holding Back MSMEs In Mobile Accessories

OPINION: India’s mobile accessories sector holds immense promise not just for meeting domestic demand but for evolving into a significant global export engine. 

To truly empower MSMEs within the Make in India framework, a more inclusive and pragmatic approach is essential.

Source : karlyukav/Freepik

By Imran Kagalwala

The "Make in India" initiative, launched in 2014, set out to establish India as a global manufacturing powerhouse. While the program has driven progress in several sectors, its impact on the mobile accessories space, despite surging demand, remains uneven. MSMEs, which form the backbone of this segment, continue to face a range of challenges that limit their ability to scale or compete globally.

Having been closely involved in the mobile accessories industry, I’ve witnessed these roadblocks firsthand. Although the government has introduced several high-profile initiatives, like the Production Linked Incentive (PLI) scheme, phased manufacturing programmes (PMP), and semiconductor push, these largely benefit larger players. MSMEs often struggle to qualify due to steep investment thresholds, complex compliance requirements, and lengthy timelines for disbursement. For many small and regional manufacturers, even basic awareness of these schemes is lacking.

Reliance On Imports

One of the biggest constraints is the heavy reliance on imported components. Despite the policy focus on increasing domestic value addition, India still lacks the ecosystem to produce key parts such as connectors, sensors, chips, and batteries at scale. This dependency inflates input costs and exposes MSMEs to global supply chain disruptions. The COVID-19 pandemic laid this bare when lockdowns and export restrictions from China and Southeast Asia triggered widespread production delays.

Another pressing issue is the shortage of skilled manpower. While India boasts a large labour force, the specialised skills required for electronics manufacturing, such as SMT operations or hardware engineering, remain in short supply. Additionally, R&D in the mobile accessories segment is underdeveloped. Many smaller brands still rely on reverse engineering or generic white-label designs, making it difficult to innovate or build differentiation in a market driven increasingly by design, performance, and user experience.

Further Shortcomings

Infrastructure limitations further complicate matters. Inconsistent power supply, lack of accredited testing labs, and weak logistics networks outside major cities all create friction. For MSMEs striving to meet global quality standards, these gaps lead to project delays, higher costs, and credibility issues.

To truly empower MSMEs within the Make in India framework, a more inclusive and pragmatic approach is essential. Simplifying access to government schemes, incentivising domestic component manufacturing, expanding skill development programs, and providing access to shared design and testing facilities are critical steps. Public-private partnerships can also play a pivotal role by establishing common R&D hubs, manufacturing clusters, and stronger export facilitation.

Unlocking Potential

India’s mobile accessories sector holds immense promise not just for meeting domestic demand but for evolving into a significant global export engine. 

But to unlock that potential, MSMEs need more than just policy — they need practical, on-the-ground support. Only then can the vision of Atmanirbhar Bharat translate into real, scalable growth for this vital segment of India’s manufacturing economy. 

(The author is the Co-Founder of Unix India)

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.