India's Smartphone Exports See 54% Growth, Exceed Rs 1.75 Lakh Crore in April-February
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Synopsis
India's smartphone exports have remarkably surged to over Rs 1.75 lakh crore ($21 billion) in the first 11 months of FY2024-25, marking a significant 54% increase from the previous year. The growth is driven by the PLI scheme, attracting major tech companies and boosting local production.
Key Takeaways
- Smartphone exports surpassed Rs 1.75 lakh crore in 11 months.
- 54% increase compared to last fiscal year.
- PLI scheme has attracted major investments.
- Apple leads exports with 70% contribution.
- Mobile phone production has increased over five times.
New Delhi, March 17 (NationPress) India’s smartphone exports have astonishingly surpassed Rs 1.75 lakh crore ($21 billion) within the first 11 months of FY2024-25 (April-February), marking a remarkable 54 percent increase compared to the same period in FY2023-24, as reported by the latest industry data.
The Minister for Electronics and Information Technology (MeitY), Ashwini Vaishnaw, has expressed optimism that smartphone exports will hit $20 billion (Rs 1.68 lakh crore) during 2024-25, a figure already surpassed in the first 11 months of the current fiscal year, according to data from the India Cellular and Electronics Association (ICEA).
India’s electronics exports, spearheaded by smartphones, have witnessed rapid growth in recent years, largely due to the government’s Production-Linked Incentive (PLI) scheme. This initiative has successfully attracted international tech giants like Apple and its suppliers, who are eager to establish alternative supply chains outside of China following US sanctions.
The PLI scheme has not only boosted exports but also decreased imports, with domestic production currently fulfilling 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 responsible for nearly 50 percent of overseas shipments. Exports from the Foxconn facility have surged by over 40 percent compared to the same period last fiscal year.
An additional 22 percent of exports came from Tata Electronics, an iPhone vendor that recently acquired the Wistron smartphone manufacturing plant in Karnataka. Another 12 percent of export shipments originated from the Pegatron facility in Tamil Nadu, where Tata Electronics purchased a 60 percent stake at the end of January. This acquisition has positioned the Tata group as a significant producer of iPhones in India.
Samsung, the South Korean tech leader, contributed roughly 20 percent of total smartphone exports from India.
The PLI for electronics manufacturing has attracted a cumulative investment of Rs 10,213 crore by December 2024, leading to the creation of over 1.37 lakh direct jobs and enhancing the nation’s exports, as outlined in the latest parliamentary report.
Under this special incentive scheme, cumulative production has reached Rs 662,247 crore.
Jitin Prasada, Union Minister of State for Electronics and IT, recently informed Parliament that thanks to government initiatives aimed at boosting electronics manufacturing, India has transitioned from being a mobile importing nation in 2014-15 to becoming a mobile phone exporter.
The implementation of the PLI scheme has led to mobile phone production rising from around 60 million units in 2014-15 to approximately 330 million units in 2023-24, representing an increase of more than five times in the last decade.
In financial terms, mobile phone production escalated from a mere Rs 19,000 crore in 2014-15 to Rs 422,000 crore in 2023-24, achieving a compound annual growth rate (CAGR) of 41 percent.
Since the launch of the PLI Scheme for Large Scale Electronics Manufacturing, mobile phone exports have soared from Rs 22,868 crore in 2020-21 to Rs 129,074 crore in 2023-24, showcasing a CAGR of 78 percent.
Moreover, while 74 percent of all mobile phones sold in India were imported in 2015, the country has now reached a stage where 99.2 percent of mobile handsets currently in use are manufactured locally.
