India surpasses Rs 85,000 crore in mobile exports fueled by government incentives: Due to the Indian government’s efforts to increase domestic production and exports, India has become a major participant in the mobile phone manufacturing sector. India has reached a milestone in mobile exports, surpassing Rs 85,000 crore, thanks to government incentives. With the ‘Make in India’ project, the Indian government hopes to increase domestic production and lessen its dependency on imports. As a result, factories for a number of international smartphone makers, including Samsung, Xiaomi, Oppo, and Vivo, have been established in India.
This increase in mobile exports has not only assisted India in narrowing its trade imbalance but has also improved the country’s job situation. Additionally, it has prompted more foreign companies to invest in India and establish production facilities, which has fueled further expansion of the country’s mobile phone manufacturing sector.
India’s quest for indigenous consumer electronics manufacture has changed the game for the nation. India achieved a remarkable milestone in the fiscal year that concluded on March 31 by exporting mobile devices worth over Rs 85,000 crore. India’s smartphone exports topped $10 billion in fiscal year 2022–2023, according to industry figures provided to IANS by the India Cellular and Electronics Association (ICEA), thanks to production-linked incentive (PLI) initiatives.
The UAE, the US, the Netherlands, the UK, and Italy are the top five international markets for Indian mobile phone exports. “The mobile phone industry will cross $40 billion in manufacturing output, and 25% exports at $10 billion is a stellar performance,” according to ICEA Chairman Pankaj Mohindroo. India is expected to reach China’s 45–50% iPhone production capacity by 2027. India’s production capability represented between 10 and 15% of the whole iPhone output as of the end of 2022. In December, Apple shipped iPhones worth $1 billion for the first time in India. The iPhone 12, 13, 14, and 14 Plus are presently produced in the country by Apple.
The government has also implemented a number of incentives in addition to the “Make in India” plan to promote domestic manufacturing and exports. One of these is the Production-Linked Incentive (PLI) program, which provides manufacturers with financial incentives for making mobile phones close to home. These activities have led to a major increase in India’s mobile phone exports in recent years. India’s mobile phone exports increased from Rs 20,000 crore in 2017-18 to Rs 85,044 crore in the fiscal year 2020–21, according to statistics made public by the Ministry of Commerce and Industry.
The year 2023 will mark a turning point for the nation, according to Rajeev Chandrasekhar, Minister of State for Electronics and IT, since mobile phone exports would reach Rs 1 lakh crore this year. The government’s push for performance-linked schemes (PLI) has put India on a new course that is “largely export-focused.”
According to Pankaj Mohindroo, Chairman of ICEA, the manufacturing output for the mobile phone industry would exceed $40 billion, with 25% of that amount going outside. Currently, more than 97% of the smartphones sold in India are made there. India is now the second-largest manufacturer of mobile phones in the world.
India and Vietnam are expected to gain the most from the relocation of the smartphone supply chain away from China. India would produce between 10 and 15% of all iPhones by the end of 2022. Apple exported $1 billion worth of iPhones to India for the first time in December. It now manufactures the 12, 13, 14, and 14 Plus in the country.
Several factors have contributed to India’s success in the mobile phone manufacturing industry, including:
- Government incentives: Programs like “Make in India” and the Production-Linked Incentive plan from the Indian government have significantly aided in increasing domestic manufacturing and exports.
- The availability of qualified labour makes India an appealing location for corporations wishing to set up manufacturing facilities. India has a sizable pool of trained labor.
- India provides cost-effective production because of its affordable labor costs and favorable regulatory environment.
- India’s geographical position makes it simple to access important markets including those in Southeast Asia, the Middle East, and Africa.
Factors contributing in the success of India in the mobile phone manufacturing industry
India’s mobile phone manufacturing industry is poised for significant growth in the future, driven by a combination of factors such as government support, skilled labor, cost-effective production, strategic location, and rising domestic demand.
India’s success in the mobile phone manufacturing industry is expected to continue in the future, with several factors contributing to its potential for further growth, such as:
- Rising demand: With increasing smartphone penetration and the shift towards 5G technology, the demand for mobile phones is expected to continue to rise in India.
- Increasing government support: The Indian government has announced plans to further boost local manufacturing and exports, which is expected to create more opportunities for global manufacturers in the country.
- Focus on innovation: Indian manufacturers are increasingly focusing on innovation, with several companies investing in research and development to develop new products and technologies.
- Favorable regulatory environment: The Indian government has introduced several measures to create a favorable regulatory environment for manufacturers, including simplifying tax procedures and reducing import tariffs.
India’s astounding accomplishment of exporting mobile phones worth more than Rs 85,000 crore is evidence of the government’s efforts to support domestic production and exports. Mobile exports have increased dramatically as a result of the ‘Make in India’ programme and the manufacturing-Linked Incentive plan, which attracted international manufacturers to establish manufacturing facilities in India. India’s mobile phone manufacturing sector is well-positioned for future expansion because to a vast pool of trained workers, efficient production, a prime location, and a supportive regulatory framework. India is positioned to become a significant participant in the global mobile phone manufacturing business in the years to come because to increased local demand and government backing.