India set to export mobile phones worth US$ 9 bn in FY23

The increase is a result of production and outward shipments being increased by the manufacturers

December 6, 2022

In FY22, the exports of mobiles reached US$ 5.8 billion

Electronics worth about US$ 87 billion were manufactured domestically in 2021

Exports of mobile phones in India have crossed the US$ 5 billion mark in the April-October period of FY23

About 66% of foreign direct investment (FDI) in electronics has arrived in the last three years

India is expected to export mobile phones amounting to US$ 9 billion in FY23, up from US$ 5.8 billion in FY22, as production and outward shipments are being increased by the manufacturers, according to a report from industry body India Cellular and Electronics Association (ICEA).

According to the report, electronics worth about US$ 87 billion were manufactured domestically in 2021, which is expected to reach US$ 100 billion this year. Additionally, the country is expected to achieve an overall electronics manufacturing of US$ 300 billion by FY26.

Exports of mobile phones in India have crossed the US$ 5 billion mark in the April-October period of FY23, compared to US$ 2.2 in the same period last year. Due to the introduction of Production-Linked Incentive (PLI) schemes, an ecosystem for manufacturing electronics has been developed, and growth in exports has been witnessed. According to media reports, the INR 41,000-crore PLI scheme for smartphone manufacturing commenced in 2020, where Tamil Nadu has emerged as a strong player in attracting companies such as Foxconn and Pegatron, the contract manufacturers for Apple, apart from Dell and Bharat FIH (another Foxconn unit).

Experts said that the country plans to increase mobile phone exports from the current US$ 18-20 billion to US$ 120 billion by FY26. Mobile phones could account for US$ 60 billion, in the US$ 120 billion electronics exports targeted by FY26. Additionally, according to media reports, the export of electronics goods in the April-September period increased by 54% to US$ 10.2 billion from US$ 6.5 billion in the same period last year.

India is expected to become an electronics manufacturing hub, as all the states are willing to participate in the electronics manufacturing opportunity, which is creating hundreds of thousands of jobs across the country. About 66% of foreign direct investment (FDI) in electronics has arrived in the last three years. Mobile phones have become the single largest contributor to electronics exports.

With increasing salaries, and consumer electronic companies launching more affordable products, the shipments of electronics and smartphones can be expected to witness a further increase.


Source: Economic Times

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