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>> India is taking on China to be the world next smartphone making power house. Big names in the market like Samsung and even China's Xiaomi are all driving cash into the country. And bringing manufacturers like Foxconn with them. India's domestic market is deep and its work force is cheap.
More China's labor cost are on the rise and that's already helped India pull ahead to world number two mobile phone maker. Reuters correspondent Sankalp Phartiyal has been visiting factories trying to make phones just like their Chinese rivals but with a more attractive price tag.>> I'm standing in the factory of home grown mobile phone maker Lava International on the outskirts of capital New Delhi.
Here, we make smartphones, which are sold domestically and also exported. Specifically on this floor, they mount components onto a printed circuit board. This is a printed circuit board, and it looks like this after components are mounted on it. Now this makes up nearly 50% of a cost of a smartphone.
>> Smartphones are one of Prime Minister Modi's few success stories. He's promised to create tens of millions of jobs as part of a so called making India drive has started on more than one front. And in the run up to a general election next year, smartphone manufacturing could help him stay above critics.
India's also set to benefit from its main competitor's fallout with the US.>> A trade war is going on between the United States and China as we speak. This could actually help India smartphone manufacturing ambitions, as a lot of global smartphone makers are setting up factories in India to assemble phones and sell them in the country as well as export them.
>> India has more than a billion wireless subscribers, and hundreds of millions of them don’t yet have a smart phone. Those numbers successfully wooed mobile brands to the country, but the next step may be a bigger challenge. To go global it needs to look beyond its own borders, and big companies want business-friendly laws, not India's historically protectionist regulation.
That may be a bigger hurdle for Modi, as election day creeps nearer.