India has witnessed a remarkable growth in its smartphone exports, positioning them as the fourth-largest export item with a 42% increase, reaching $15.6 billion in FY24. This marks a significant rise from the previous fiscal year, overtaking motor gasoline in the export rankings.
Significant Rise in Smartphone Exports
The rapid expansion of smartphone exports from India is a noteworthy development. According to commerce department data, the surge was primarily driven by a 158% increase in shipments to the United States, totaling $5.6 billion. Other major destinations include the United Arab Emirates ($2.6 billion), the Netherlands ($1.2 billion), and the United Kingdom ($1.1 billion).
This substantial growth reflects the effectiveness of India’s targeted export strategies and the increasing global demand for smartphones manufactured in India.
Impact of Production-Linked Incentive (PLI) Scheme
The PLI scheme has been instrumental in propelling India’s status as a major mobile phone manufacturing hub. Launched by the government to boost domestic manufacturing and exports, the scheme has helped India become the second-largest mobile phone manufacturing country, trailing only China. The initiative is part of the broader China-Plus-One strategy, which seeks to attract companies currently manufacturing in China to shift their operations to India, leveraging ongoing geopolitical tensions.
Contributions from Major Players
Key players benefiting from the PLI scheme include Apple’s vendors—Foxconn, Wistron India (now Tata Electronics), and Pegatron—as well as Samsung. These companies have significantly contributed to the growth in exports. Apple, in particular, has led the charge with outbound shipments of mobile devices expected to surpass Rs 1.2 trillion ($14.39 billion) in FY24, a 33% increase from Rs 90,000 crore in FY23.
Rising Domestic Production and Export Value
The overall production value of mobile devices in India, catering to both domestic and international markets, reached Rs 4.1 trillion ($49.16 billion) in FY24. This represents a 17% year-on-year increase, according to preliminary estimates by the Indian Cellular and Electronics Association (ICEA). Exports accounted for nearly 30% of the total output value in FY24, up from 25% in FY23, highlighting the growing importance of the export market in the mobile device sector.
Future Prospects
India’s ascent as a significant player in the global smartphone market underscores the success of its manufacturing and export policies. With continuous support from government initiatives and the active participation of major technology companies, India is poised to further solidify its position as a leading exporter of smartphones. The sustained growth in this sector not only boosts the economy but also enhances India’s presence in the global technology supply chain.