India’s Smartphone Exports Skyrocket by 140% to $3 Billion in January
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Synopsis
India's smartphone exports soared by 140% in January, reaching a record $3 billion. Major players like Apple and Samsung significantly increased their shipments from local supply chains, contributing to a robust growth in the electronics sector.
Key Takeaways
- Smartphone exports reached $3 billion in January.
- Exports increased by 140% compared to last year.
- Apple and Samsung led the surge in shipments.
- Tata Electronics and Foxconn are major contributors.
- India's electronics exports are benefiting from the PLI scheme.
New Delhi, Feb 17 (NationPress) India’s smartphone exports in January witnessed a remarkable increase of 140% compared to the same month last year, reaching an unprecedented high of Rs 25,000 crore ($3 billion). This surge is attributed to major tech companies, Apple and Samsung, ramping up their overseas shipments from local supply chains, as per industry estimates.
For the 10-month period from April to January in the current fiscal year, total smartphone exports have soared to an impressive Rs 1.55 lakh crore, marking a significant 56% rise from Rs 99,120 crore recorded during the same timeframe last year.
A substantial 70% of these exports originated from Apple’s iPhone supply chain, with Tamil Nadu-based Foxconn responsible for around 50% of the overseas sales. Exports from the Foxconn facility saw a remarkable 43% increase compared to the previous fiscal year.
About 22% of the total exports came from Tata Electronics, which has acquired the Wistron smartphone manufacturing plant in Karnataka. Additionally, 12% of the export volumes were sourced from the Pegatron facility in Tamil Nadu, in which Tata Electronics secured a 60% stake by the end of January. With these acquisitions, Tata has positioned itself as a leading producer of iPhones in India.
South Korean tech titan Samsung accounted for approximately 20% of the overall smartphone exports from India.
India's electronics exports, primarily driven by smartphones, have been on the rise, thanks to the government’s Production Linked Incentive (PLI) Scheme. This initiative has successfully drawn foreign tech giants seeking to establish alternative supply chains outside of China in light of recent sanctions.
Minister of Electronics and Information Technology, Ashwini Vaishnaw, projected that smartphone exports could reach $20 billion (Rs 1.68 lakh crore) by 2024-25.
Under the PLI scheme for electronics manufacturing, cumulative investments have reached Rs 10,213 crore by December 2024, creating over 1.37 lakh direct jobs and enhancing the country's export capabilities, as disclosed in Parliament.
As a result of this special incentive program, cumulative production has hit Rs 6,62,247 crore.
Thanks to the government's policies promoting electronics manufacturing, India has transformed from a mobile importing nation in 2014-15 to a mobile phone exporter, as stated by Union Minister of State for Electronics and IT Jitin Prasada in Parliament.
Propelled by the PLI initiative, mobile phone production surged from around 60 million units in 2014-15 to approximately 330 million units in 2023-24, marking a more than fivefold increase in the last decade.
In monetary terms, mobile phone production escalated from Rs 19,000 crore in 2014-15 to Rs 4,22,000 crore in 2023-24, reflecting a compound annual growth rate (CAGR) of 41%.
Since the launch of the PLI Scheme for Large Scale Electronics Manufacturing, mobile phone exports have jumped from Rs 22,868 crore in 2020-21 to Rs 1,29,074 crore in 2023-24, achieving a CAGR of 78%.
Moreover, while 74% of mobile phones sold in India were imported in 2015, the country has now reached a milestone where 99.2% of mobile handsets in use are manufactured domestically.
