July 1, 2024
India captured nearly 50% of the reduction in mobile exports from China and Vietnam, demonstrating a successful shift in the supply chain
The smartphone production-linked incentive (PLI) scheme has driven India's mobile export growth, with significant contributions from Apple
Apple doubled its production and exports from India, with its iPhone exports making up 65% of India's mobile exports
Samsung also increased its exports from India, contributing US$3.5 billion, and is set to expand further under the PLI scheme
India is quickly bridging the gap with China and Vietnam in mobile phone exports. In FY24, while exports from China and Vietnam decreased by 2.78% and 17.6%, respectively, India’s exports surged by 40.5%. This growth, driven by the smartphone production-linked incentive (PLI) scheme, allowed India to capture nearly 50% of the decline in exports from China and Vietnam.
According to global trade data, China’s mobile phone exports dropped from US$136.3 billion in FY23 to US$132.5 billion in FY24, a US$3.8 billion decline. Vietnam saw a reduction from US$31.9 billion to US$26.27 billion in the same period, amounting to a US$5.6 billion drop. The cumulative decline from both countries totalled US$9.4 billion.
On the other hand, India’s mobile phone exports increased from US$11.1 billion in FY23 to US$15.6 billion in FY24, a US$4.5 billion rise. This significant growth reflects the success of the PLI scheme, particularly with Apple making India its second base for iPhone manufacturing after China. Apple has doubled its production and exports from India over the last two fiscal years. Its vendors, including Foxconn, Pegatron, and Wistron (now owned by Tata), have set up factories in India under the scheme.
Apple’s iPhone exports now contribute 65% of India’s total mobile exports, which reached US$15.6 billion in FY24, and over one-third of India’s electronics exports, which crossed US$29 billion. Samsung, another beneficiary of the PLI scheme, exported around US$3.5 billion worth of mobile phones from India in FY24 and is expected to increase its exports further.
India’s rise in mobile phone exports is seen as a significant win for the government, particularly amid geopolitical tensions with China. The PLI scheme has effectively attracted companies looking to diversify their supply chains away from China, solidifying India’s position as a key player in the global mobile phone market.
Source: Economic Times