The remarkable 40% surge in India's mobile phone exports, reaching a impressive $15.6 billion in the last fiscal year, is a testament to the nation's growing prowess. This remarkable achievement is particularly evident in the iPhone segment, where India has solidified its position as a key production hub for Apple. The tech giant's vendors, including industry heavyweights like Foxconn, Pegatron, and Tata-owned Wistron, have established manufacturing facilities in the country, further driving this impressive export growth.
In a remarkable display of economic resilience, India is rapidly bridging the gap with powerhouses like China and Vietnam in the mobile phone export arena. While exports from these Asian giants saw a decline of 2.78% and 17.6% respectively in the last fiscal year, India's mobile phone exports have soared by an impressive 40.5%.
This remarkable achievement is a testament to the success of India's strategic initiatives. "The smartphone production-linked incentive (PLI) scheme was announced with the objective of capturing supply chain shifts from China, and the results are now beginning to show," explains a government official, speaking on the condition of anonymity.
The data paints a compelling picture. China's mobile phone exports dropped from $136.3 billion in FY23 to $132.5 billion in FY24, a decline of $3.8 billion. Vietnam experienced an even sharper fall, with exports plummeting from $31.9 billion to $26.27 billion – a staggering 17.6% reduction, equivalent to a $5.6 billion decline. Seizing the opportunity, India has managed to capture nearly 50% of this cumulative $9.4 billion reduction in exports from China and Vietnam.
"Data implies India captured nearly 50% of the total decline in mobile exports from China and Vietnam," the official noted, underscoring the country's remarkable success in the global mobile phone market.
Experts hail this development as a significant win for the Indian government's efforts to attract companies adopting the China+1 strategy, which aims to diversify supply chains and manufacturing operations beyond China. The smartphone PLI scheme has been a key driver, with tech giants like Apple making India their second manufacturing hub after China.
Apple's vendors, including Foxconn, Pegatron, and Tata-owned Wistron, have set up factories in India, leading to a surge in production and exports. According to data submitted to the Ministry of Electronics and IT, Apple's production in India has doubled from $7 billion in FY23 to $14 billion in FY24, while exports have risen from $5 billion to over $10 billion in the same period.
This remarkable growth in India's mobile phone exports, which now account for 65% of the country's $15.6 billion mobile exports and over one-third of its total electronics exports of $29 billion, is a testament to the nation's rising prominence in the global supply chain. As the world navigates the evolving geopolitical landscape, India has seized the opportunity to emerge as a formidable player in the mobile phone export market, solidifying its position as an attractive destination for global manufacturers.
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