India Expected to Achieve $20 Billion in Smartphone Exports This Fiscal Year

Synopsis

India's smartphone exports are set to reach $20 billion in FY25, riding on Apple's 'made in India' iPhones. The country's smartphone market is expected to surpass $50 billion this year, with significant job creation and manufacturing growth driven by local production incentives.

Key Takeaways

Smartphone exports projected to reach $20 billion in FY25.
India's smartphone market forecast to exceed $50 billion this year.
Apple and Samsung lead the market with premium product offerings.
Production-Linked Incentive scheme boosts local manufacturing.
Electronics sector expected to create 12 million jobs by 2027.

New Delhi, Jan 14 (NationPress) The nation’s smartphone sector, anticipated to exceed $50 billion in value this year, is projected to reach $20 billion in exports during FY25, primarily driven by 'made in India' Apple iPhones.

In FY24, smartphone exports from the country exceeded $15 billion, with Apple contributing over $10 billion. This fiscal year, industry forecasts suggest this figure will surpass $20 billion, largely propelled by iPhone exports.

With the ongoing trend of premiumization and a focus on local manufacturing, Apple and Samsung are leading the market. The Indian smartphone landscape is changing swiftly, with original equipment manufacturers (OEMs) increasingly centering their efforts on premium product launches to enhance brand value, demonstrate technological advancements, and elevate profitability.

Thanks to the Production-Linked Incentive (PLI) scheme, Apple has already achieved Rs 1 lakh crore in iPhone exports from India in the calendar year 2024.

Over the last four years, Apple's ecosystem has created 175,000 new direct jobs, with over 72 percent of these positions occupied by women, according to government statistics.

In 2014-15, domestic production of mobile phones was at 5.8 crore units, which surged to 33 crore units in 2023-24, alongside a significant reduction in imports. Exports reached 5 crore units, and foreign direct investment (FDI) surged by 254 percent, underscoring the PLI scheme's effectiveness in enhancing manufacturing and investment.

The electronics sector in India is projected to generate 12 million jobs by 2027 — including 3 million direct and 9 million indirect positions.

Direct employment opportunities are expected to encompass nearly 1 million engineers, 2 million ITI-certified professionals, and 200,000 specialists in fields like AI, ML, and data science, with non-technical roles contributing 9 million indirect jobs, highlighting the sector’s vast potential to drive economic expansion, according to a recent report by TeamLease Degree Apprenticeship.

The electronics industry has set an ambitious target of achieving $500 billion in manufacturing output by 2030. To reach this goal, the sector must quintuple its growth over the next five years, closing a $400 billion production gap.

Currently, domestic production is valued at $101 billion, with mobile phones accounting for 43 percent, followed by consumer and industrial electronics at 12 percent each, and electronic components at 11 percent.