India's smartphone exports soared to unprecedented levels this past November, reaching Rs 20,395 crore, which marks a remarkable 92% increase compared to the previous year’s figures of Rs 10,634 crore, as reported by the India Cellular & Electronics Association (ICEA). For the first time, India has crossed the Rs 20,000 crore mark for smartphone exports within a single month.
Typically dominated by international giants, this surge can largely be attributed to the success of Apple and Samsung. Apple, leading the charge, exported iPhones worth Rs 14,000 crore, setting its highest-ever monthly export value. This figure surpasses Apple's previous record of Rs 12,000 crore achieved the month prior, and reflects the company's commitment to India, as over 80% of the total production value of iPhones assembled here was linked to the US tech giant's operations.
The primary contributors to these impressive figures are Foxconn’s iPhone manufacturing plant located in Tamil Nadu, Tata Electronics based out of Karnataka, and Pegatron. Their collaboration has significantly boosted India’s position as a global smartphone manufacturing hub.
According to industry experts, the government’s Production-Linked Incentive (PLI) scheme has played a pivotal role in nurturing this growth. The initiative has transformed smartphone exports, eleviating it from India’s 23rd-ranked export category back in 2019 to its current standing as the third-largest individual commodity export.
“The impact of the PLI scheme is significant,” noted the ICEA. “Against total disbursements of Rs 5,800 crore between 2021 and 2024, our industry has contributed Rs 1.1 trillion via increased goods and services tax and duties on mobile components.” This scheme has generated substantial economic impact by spurring approximately 3 lakh direct and 6 lakh indirect jobs, many of which have been filled by young women entering the workforce.
Looking at the broader picture, overall electronics exports have also seen substantial growth, moving from seventh place back in 2019 to currently being the third rank holder of total exports for FY25. The aggressive push for electronics manufacturing coinciding with the surge of high-value exports is not just promising, but also pivotal for India’s ambitions to strengthen its global position.
Industry players are optimistic, with expectations indicating the smartphone market's estimated growth of 7-8% for the current year, largely driven by the growing consumer appetite for premium smartphones, 5G technology, and artificial intelligence features. The mobile handset market is set to maintain steady growth, as manufacturers adapt to changing consumer preferences and market demands.
The government is aiming to achieve $500 billion in electronics manufacturing by FY30. Achieving this goal will require prioritization of export growth, allowing India to emerge among the top three global exporters within this sector by the projected year. The Cumulative production value of mobile phone manufacturing has skyrocketed from Rs 18,900 crore during FY 2014-15 to estimates as high as Rs 4.10 lakh crore for FY24, indicating tremendous growth potential.
With Apple recently manufacturing/assembling $14 billion worth of iPhones within the country during FY24 and exporting more than $10 billion, the numbers speak volumes about the industry's capacity and prospects. Venues such as Foxconn’s plant are expected to accelerate these numbers even more with their production capabilities.
The noteworthy performance of this year’s smartphone exports exemplifies the promising future of India’s electronics sector. With major electronic companies intensifying their operations, India is steadily becoming a cornerstone of global supply chains, enabling the nation to solidify its standing as a competitive player. The transformation within this sector signals significant economic growth and job opportunities, creating pathways for innovation and enhanced technology capabilities.
India's bright future, powered by technological advancements and strategic initiatives, firmly plants the nation at the forefront of global electronics manufacturing. With both foundational and progressive strategies at play, the smartphone export growth not only showcases India’s manufacturing prowess but also outlines the potential for even greater achievements within the vast electronic manufacturing domain.
