Quick Summary

The mobile manufacturing industry in South Asia is evolving rapidly. With India emerging as a key global player, neighboring Bangladesh is now stepping up efforts to become a serious contender. But can Bangladesh replicate India's success in smartphone production? In this comprehensive article, we explore the mobile manufacturing potential of Bangladesh, current challenges, strategic comparisons with India, and what the future holds for South Asia.

The Mobile Manufacturing Boom in South Asia

The global demand for smartphones continues to surge, pushing companies to diversify production bases. South Asia has emerged as a manufacturing hub due to cost advantages, growing local demand, and government incentives.

India, for instance, has become the world’s second-largest mobile manufacturing hub, thanks to initiatives like "Make in India."

Understanding Mobile Manufacturing

Mobile manufacturing involves the assembly or full production of smartphones, including components like circuit boards, displays, batteries, and more. It covers:

• PCB (Printed Circuit Board) assembly

• Display panel integration

• Battery and sensor installation

• Software and OS flashing

• Final device testing and packaging

Global players seek low-cost manufacturing zones with robust supply chains and skilled labor.

Why India Became a Mobile Manufacturing Powerhouse?

India's rise in this space wasn't overnight. The growth was driven by:

1. Government Policies

• Make in India and PLI (Production Linked Incentives) attracted global brands.

• Tax breaks for component and handset manufacturers.

2. Infrastructure and Ecosystem

• Rapid development of electronics manufacturing clusters in Noida, Tamil Nadu, and Karnataka.

• Investments in supply chains and logistics.

3. Domestic Demand

• A massive local market created stability and reduced dependency on exports.

4. Global Realignment

• Companies like Apple, Xiaomi, and Samsung looked to reduce dependency on China.

Mobile Manufacturing in Bangladesh: Current Landscape

Bangladesh is gradually entering the mobile manufacturing space, with several key developments:

Local and Foreign Brands Assembling in Bangladesh

• Samsung, Xiaomi, realme, and itel are assembling phones locally.

• Brands like Walton and Symphony represent homegrown efforts.

Economic Zones and Incentives

• The Bangladesh Hi-Tech Park Authority (BHTPA) is creating 28 hi-tech parks.

• Tax holidays and import duty cuts for CKD (Completely Knocked Down) units are encouraging investment.

Labor Advantage

• Bangladesh has one of the lowest labor costs in South Asia.

• A young workforce open to vocational training.

Key Challenges for Bangladesh

Despite positive steps, Bangladesh faces several barriers:

1. Supply Chain Limitations

• Most high-end components are still imported from China or India.

• Lack of local component suppliers for chips, displays, and sensors.

2. Infrastructure Bottlenecks

• Power shortages and underdeveloped transport logistics raise operational costs.

• Lack of dedicated cargo airports for tech exports.

3. Skills and R&D Gaps

• Most workers are trained for assembly-line tasks, not high-skill manufacturing.

• Minimal local R&D for chipset or OS-level innovation.

Can Bangladesh Replicate India's Mobile Manufacturing Model?

The comparison is natural but must consider scale and strategy.

1. Market Size

India’s domestic smartphone market exceeds 300 million units/year. Bangladesh’s is around 40 million.

2. Policy Implementation

India’s policies are long-term, consistent, and tied to infrastructure upgrades. Bangladesh must follow with stable, investment-friendly regulation.

3. Ecosystem Readiness

India’s complete manufacturing ecosystem includes chip plants, EMS companies, logistics parks, and testing labs. Bangladesh is still developing this foundation.

Strategic Advantages Bangladesh Can Leverage

Despite challenges, Bangladesh has several unique strengths:

1. Duty-Free Access to EU Markets

As a Least Developed Country (LDC), Bangladesh enjoys tariff-free access to EU under EBA (Everything But Arms). This could position it as an export-friendly mobile manufacturing base.

2. Strategic Location

Near to both India and Southeast Asia, enabling faster shipping and trade routes.

3. Demographic Edge

Over 60% of Bangladesh’s population is under 35, providing a massive pool of trainable labor.

Real-World Examples: Mobile Manufacturing Progress in Bangladesh

Samsung's Assembly Plant

Samsung started assembling smartphones locally through Fair Electronics in Narsingdi. Over 90% of Samsung phones sold in Bangladesh are now locally assembled.

Walton's Local Innovation

Walton, a Bangladeshi electronics giant, has begun making smartphones with increasing localization, including PCB manufacturing.

Tecno and Infinix

Transsion Holdings (owners of Tecno, itel, and Infinix) have assembly operations in Bangladesh, targeting the mid-range segment.

How Bangladesh Can Scale Up?

To grow like India, Bangladesh must:

• Invest in technical education and electronics R&D.

• Develop component manufacturing clusters (batteries, displays, sensors).

• Improve power reliability and logistics.

• Attract global OEMs and EMS providers.

• Offer consistent tax breaks and ease of business rules.

Can Bangladesh Become the Next India?

Bangladesh is making steady progress in mobile manufacturing. While it can't yet match India in scale, it holds promise as a competitive, cost-effective, export-friendly destination for global smartphone brands.

With smart policy moves, investment in talent, and ecosystem development, Bangladesh could become the next rising star in South Asia’s tech manufacturing scene.

The global shift away from single-source manufacturing creates a golden opportunity for the country. The road is long, but the direction is promising.