MOX as a cluster concept

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Clusters as a strategy for competitive advantage has long been echoed by thought leaders like Alfred Marshall and Michael Porter. The Government of India too has embraced the concept of interconnected and associated institutions in close geographical proximity having significant economic potential. Characterised by similarities in production techniques, technology, communication, common markets and facing common challenges and opportunities, these cluster initiatives will prove to be islands of manufacturing excellence in India’s race towards Make in India!

The Central Government’s National Electronics Policy, plans to auction 5G spectrum to popularise tools like Internet of Things (IoTs) all dovetailing into its Digital India plans bears testimony of its intent. Going forward, institutions like the Telecom Regulatory Authority of India (TRAI) will institute transparency in telecom licence acquisitions and spectrum allocations to further buttress this industry. Mega-infra projects such as the Delhi–Mumbai Industrial Corridor Project (DMIC) and the Amritsar Delhi Kolkata Industrial corridor (ADKIC) will open access to 60% of India’s population. It will unleash investments of over USD 90 billion, build airports and sea ports and generate over 4000 MW from power plants.

India’s potential as the fastest growing mobile phone market is well acknowledged; growing at a rate over 20% annually to flourish into a USD 780+ billion market by year 2020. An estimate 1.5 billion mobile phones will be sold in the next 3 years which will form over 8% of India’s GDP. There has been an encouraging 20% growth in new handset vendors entering the market. These mobile handsets will be riding the USD 103+ billion Indian Telecommunication services market in the next two years with the Technology sector per se blooming to a USD 1 Trillion in the next half decade!

India’s most populous state, Uttar Pradesh (UP), has been quick to perceive this unfolding growth potential. It modified its Information Technology and Electronics System Design and Manufacturing (ESDM) policies seizing the opportunity that Mobile Open Exchange Cluster (MOX) presented in NOIDA. The policies have greatly helped in opening business and skill development opportunities in the region by welcoming investments by IT and allied industries to set new benchmarks in the cluster concept. MOX will instil the same success story for WTC NOIDA as other cluster concepts like Bengaluru for ICT, Surat for diamond and textile, Vadodara and Gurgaon-Manesar for service based and manufacturing respectively. State Government has made all efforts as a partner to promote and inherit MOX for regional progress.

MOX is designed as an innovative cluster unit to create a state-level indigenous mobile manufacturing hub. Besides building infrastructure, it will encourage both Software and Hardware development as part of this hub. A suitable eco-system will unfold in MOX which will benefit both manufacturers and consumers. MOX’s locational advantage being in NOIDA will garner ready access to skilled manpower and foster collaborations between related industries and service providers. It will help establish an efficient supply chain system amongst its neighbours. This, surely will reflect in the operation costs and bottom lines of manufacturers in MOX.

The MOX eco-system is designed as a one for all and all for one infrastructure possibility. It will have commercial space to house offices, warehouses, retail, hotels and expo-centres. Educational institutions, healthcare facilities, arts and cultural facilities together with recreation and sports will constitute social infrastructure. It will also be backed with residential spaces.

Amidst this all-encompassing infrastructural system will thrive related business. Mobile, accessories and component manufactures will be in close vicinity of each other. Software and application development will support hardware manufacturers to evolve a composite product. Skills will grow and flourish amidst R&D activities that are bound to support further development.

India’s mobility growth projections are undeniable. One such cluster infrastructure and its eco-system has been put in motion. MOX awaits the believers and the progressive!

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