Synopsis
India is on track to surpass Rs 3 lakh crore in electronics exports this fiscal year, driven largely by smartphone sales. Exports have already reached Rs 2.87 lakh crore, showing a significant increase compared to the previous fiscal year, with major contributions from Apple's iPhone supply chain and government initiatives.Key Takeaways
- India's electronics exports expected to exceed Rs 3 lakh crore.
- Smartphones are the primary driver of this growth.
- Apple’s iPhone supply chain plays a crucial role.
- Government's PLI scheme is attracting foreign investments.
- Domestic production meets 99% of local demand.
New Delhi, March 25 (NationPress) In a significant advancement for domestic manufacturing, India is poised to have its electronics exports exceed Rs 3 lakh crore for the first time in this fiscal year (FY25), primarily propelled by smartphones.
According to the latest industry statistics, electronics exports have reached Rs 2.87 lakh crore within the first 11 months of FY25 (April-February), marking a remarkable growth of 35 percent from Rs 2.11 lakh crore during the same timeframe in the previous fiscal (FY24).
Smartphones, valued at Rs 1.75 lakh crore, remain the leading factor in the growth of electronics exports for the April-February period, reflecting a 54 percent increase compared to the same duration in FY2023-24.
Exports of Apple’s iPhones have amounted to Rs 1.25 lakh crore in the first 11 months of FY25, contributing a notable 43 percent of total electronics exports and 70 percent of overall smartphone exports.
The government had anticipated that smartphone exports would hit $20 billion (Rs 1.68 lakh crore) during 2024-25; however, this projection has already been surpassed within the initial 11 months of the current financial year, as reported by the India Cellular and Electronics Association (ICEA).
India’s electronics goods exports, spearheaded by smartphones, have been on an upward trajectory in recent years, largely thanks to the government’s Production-Linked Incentive (PLI) scheme, which has effectively attracted foreign technology giants like Apple and its suppliers, who are keen to establish alternative supply chains outside of China following US sanctions.
The PLI scheme has significantly boosted exports while reducing imports, as domestic production now satisfies 99 percent of local demand.
Approximately 70 percent of the exports were generated by Apple’s iPhone supply chain, with the Foxconn plant in Tamil Nadu accounting for nearly 50 percent of all overseas shipments. Exports from the Foxconn facility saw a greater than 40 percent increase compared to the previous fiscal year.
Additionally, 22 percent of the exports originated from Tata Electronics, an iPhone vendor that acquired the Wistron smartphone manufacturing facility in Karnataka. Another 12 percent of export shipments came from the Pegatron site in Tamil Nadu, where Tata Electronics acquired a 60 percent stake as of late January. With the acquisition of these two Taiwanese companies, the Tata group has emerged as a key player in iPhone production within the nation.
The South Korean tech giant Samsung contributed around 20 percent of the total smartphone exports from India.
In the meantime, the PLI schemes have attracted Rs 1.61 lakh crore in investments, generated Rs 14 lakh crore in production, and facilitated Rs 5.31 lakh crore in exports while creating 1.15 million jobs.
