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Shillong, June 21: India’s mobile phone exports are poised to exceed Rs 1.2 trillion in the current fiscal year (FY24), propelled by favorable government policies and the production-linked incentive (PLI) scheme, with tech giant Apple playing a significant role, according to the India Cellular and Electronics Association (ICEA).
The country had already achieved an impressive milestone of Rs 900 billion in smartphone exports during the fiscal year 2022-2023.
ICEA reported a staggering 128 percent growth in mobile phone exports for the months of April and May this year.
“In the first two months of 2023-24, mobile phone exports have defied the trend of declining exports, witnessing a growth of 128 percent,” stated Pankaj Mohindroo, Chairman of ICEA.
“We are confident that we will surpass Rs 1.2 trillion this financial year, compared to the remarkable growth of Rs 900 billion in the previous financial year,” Mohindroo added.
Amidst this remarkable surge in mobile exports, Apple’s market share is expected to surpass 50 percent in FY24.
In May alone, iPhone exports reached a record Rs 100 billion, contributing to the total mobile shipments from India amounting to Rs 120 billion.
The top five destinations for India’s mobile phone exports currently include the UAE, the US, the Netherlands, the UK, and Italy.
“The mobile phone industry’s manufacturing output will surpass $40 billion,” Mohindroo projected.
Over 97 percent of smartphones sold in India are now manufactured domestically, solidifying India’s position as the world’s second-largest mobile phone manufacturer.
The country is now undergoing a transformative shift towards an export-oriented approach, primarily driven by the government’s PLI initiatives.
Estimates indicate that India, along with Vietnam, will be the primary beneficiaries of the smartphone supply chain migration from China.