Mobile Exports Reach Rs. 50 Billion In Just Eight Months.

Mobile Exports Reach Rs. 50 Billion In Just Eight Months.

During the period from April to November 2022, smartphone shipments from India crossed the Rs 50,000 crore threshold, increasing by 110% from the same time last year, at a time when exports in various industries are either declining or, at best, stay the same Moreover, this is 10% more than the Rs 45,000 crore registered for the entire FY22. Apple contract manufacturers Foxconn, Pegatron and Wistron, all based in Tamil Nadu, as well as Samsung are the key drivers of this enormous expansion.

India's mobile exports more than double;  surpassing last year's exports in just 8 months |  the financial express

Almost 40% of the Rs 50,000 crore worth of mobile phones exported from India are iPhones that Apple ships to nations in Europe, West Asia and Asia, excluding China. The remaining 40% was supplied by Samsung and a variety of small exporters, most of which are Indian device makers. The government’s smartphone PLI program, which includes Samsung and Apple’s suppliers, was unveiled in April 2020.

Samsung, which has been making mobile phones in India for over a decade, was by far the industry leader in terms of exports and manufacturing of smartphones until recently. However, Apple overtook Samsung in November to record shipments of over Rs 4,300 crore, the highest figure since the firm joined the PLI system in August 2021 with two of its three suppliers.

Industry commentators claimed that it took about a year for the PLI scheme’s effects to become apparent. Between April and August of this year, exports varied between $440 and $700 million each month, but since September they have averaged nearly $1 billion. Electronics are now India’s largest contributor to exports, and smartphones are contributing to this growth. Until 2018, electronics was listed as India’s tenth largest export industry; today it is the sixth place. At the end of FY23, electronics may well count among India’s top five export product categories.

“We have exceeded expectations in mobile exports thanks to the smartphone PLI plan. India’s competitiveness, especially on tariffs, becomes crucial as we move from import substitution to exports, especially at this size. To strengthen the local ecosystem, we also want a robust component PLI program, according to Pankaj Mohindroo, head of the India Cellular and Electronics Association (ICEA).

The government’s flagship smartphone PLI plan is seen as a huge success thanks to the increase in handset exports. Amid the epidemic, the strategy drove a change in Apple’s supply chain, one of the largest and most complex in the world. According to specialists in the field, the emphasis will now shift to rapidly promoting value addition by developing the ecosystem for components by integrating Indian businesses into the global supply exports will continue to get 4% incentive - the economic times

Since April 2020, the government has introduced 14 PLI programs. Most of these took effect in 2021, while others did so in 2022. The government launched three programs in the telecommunications sector: the manufacturing of large-scale electronics (mainly mobile phones), telecommunications and network devices, and IT hardware. The smartphone PLI plan was the most effective of the three. In fact, it is currently both the largest and the most prosperous of the 14 PLI schemes.government extends pli scheme for mobile phones by a year;  great relief for industry - the economic times

With investments totaling Rs. 2.54 billion, the 14 PLI schemes would get an incentive of Rs. 2.4 trillion. Over the next five to six years, an additional output of Rs 28.15 trillion is expected.

In FY23, India plans to export mobile phones worth $9 billion.

India will export mobile phones worth $9 billion in the current fiscal year due to increased manufacturing and shipping (FY23). According to a study, this will be a huge increase from $5.8 billion in FY22. India will produce a total of $300 billion worth of electronics by FY26, predicts industry trade group India Cellular and Electronics Association (ICEA). The entire manufacturing of electronics will increase to $100 billion from $87 billion in FY22.

Exports of phones alone crossed the $5 billion threshold, more than double the $2.2 billion of the previous year. Samsung and Apple have been the primary driving forces behind the growth of the phone industry. The majority of phones made in India are these two. “We met with the sector in early 2021 and developed this $300 billion strategy. One of the main objectives was to dramatically increase exports from the current $18–$20 billion to $120 billion by FY26. Mobile phone exports are expected to reach $9 billion this financial year “Minister of State for Electronics and Telecommunications Rajeev Chandrasekhar.Mobile phone exports doubled to more than $4.2 billion from 1.2 billion

He asserted that for India to become a manufacturing powerhouse, all states must participate. Currently, he added, “almost every state is fighting to attract investors, as 66% of foreign direct investment (FDI) has arrived in electronics in the previous three years. The Rs 41,000 crore Production Linked Incentive (PLI) plan for smartphone manufacturing was introduced by the government in 2020. Foxconn and Pegatron, two businesses that manufacture iPhones, are located in Tamil Nadu. Wistron, another manufacturer of iPhones, is based in Karnataka. Samsung’s headquarters is in Uttar Pradesh.

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