Indian Economy News

India catching up with China, Vietnam on phone exports

India's ascent in mobile phone exports vis-a-vis China and Vietnam is pronounced, with significant gains reported in FY24. While China and Vietnam saw declines of 2.78% and 17.6% in mobile exports, India surged ahead with a remarkable 40.5% increase. Officials attribute this surge to India capturing nearly half of the reduction in mobile exports from these countries, signalling successful efforts to attract supply chain diversification away from China.

The smartphone Production-Linked Incentive (PLI) scheme is central to India's success and is designed to bolster domestic manufacturing capabilities. This initiative has spurred major players like Apple to scale up production significantly in India. Under the PLI scheme, Apple's key vendors, Foxconn, Pegatron, and Tata-owned Wistron, have expanded operations, doubling production to US$ 14 billion and boosting exports to over US$ 10 billion in FY24. iPhone exports alone constitute 65% of India's US$ 15.6 billion mobile exports and contribute substantially to the country's broader electronics export sector, surpassing US$ 29 billion in FY24.

Samsung, also benefiting from the PLI scheme, is set to increase its mobile phone exports from India, having already reached approximately US$ 3.5 billion in FY24. This underscores India's growing role as a mobile manufacturing and export hub, particularly as global geopolitical dynamics drive companies to diversify their manufacturing bases.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.