India’s mobile phone exports reach US$ 15 bn.

Apple alone accounted for about US$ 10 billion worth of phone exports from India

April 18, 2024

Growth of India’s mobile electronics manufacturing industry has led to the creation of 1.2 million employment opportunities and has produced US$ 50 billion worth of goods in FY24

India’s electronics exports grew by almost 24% in FY 24, amounting to US$ 29.12 billion

Industry experts emphasize the need for continued competitiveness through tariffs, taxation, and industrial infrastructure to achieve the target of US$ 50 billion in exports by 2026-27

Electronics and IT Minister Ashwini Vaishnaw highlighted the increase in local value addition, with more components being manufactured within India, leading to steady growth in domestic value addition

India’s mobile phone exports surged by over 35% to a record US$ 15 billion-plus in FY24, driven largely by iPhones, according to government data. This marked a significant increase from the US$ 11.1 billion recorded in FY23.

Apple played a dominant role in this growth, contributing 65% or about US$ 10 billion to the total exports, doubling its contribution from US$ 5 billion in FY23. This milestone was achieved when Apple became the first smartphone brand to reach this level of exports from India.

The expansion of India’s mobile electronics manufacturing ecosystem has had a profound impact, generating over 1.2 million jobs and producing goods worth US$ 50 billion in FY24. Electronics and IT Minister Ashwini Vaishnaw highlighted the increase in local value addition, with more components being manufactured within India, leading to steady growth in domestic value addition.

Vaishnaw expressed optimism about the future, noting that manufacturing and exports are poised for further acceleration as companies establish their entire component ecosystem locally, while also increasing design inputs.

Overall, electronics exports saw a substantial increase of nearly 24% to US$ 29.12 billion in FY24, as per provisional data released by the commerce ministry.

The production-linked incentive (PLI) scheme, initiated in FY22, provided a significant boost to mobile phone exports. Major players like Apple’s Taiwanese contract manufacturers, Samsung, and Bharat FIH, along with Indian companies like Dixon, Lava, Bhagwati, UTL, and Optiemus, were selected under the scheme. Despite this, only Dixon has claimed incentives so far, primarily due to most of the production being consumed domestically.

While the growth of electronics exports has been remarkable, industry experts emphasize the need for continued competitiveness through tariffs, taxation, and industrial infrastructure to achieve the target of US$ 50 billion in exports by 2026-27. Pankaj Mohindroo, chairman of the India Cellular and Electronics Association (ICEA), highlighted the significant progress made in mobile manufacturing over the past eight years but cautioned against complacency, stressing the importance of maintaining competitiveness in the global market.

Source: Economic Times

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