Mobile Exports from India: A Booming Sector in FY24
Apple’s iPhone Exports Surpass $5 Billion in Value
The fiscal year 2024 (FY24) has witnessed a remarkable surge in the domain of mobile exports from India. Spearheading this growth is Apple, which has exported iPhones valued at over $5 billion in just the first seven months of FY24. This phenomenal achievement marks a 177% increase compared to the previous year, solidifying India’s position as a significant player in the global mobile export market.
Key Highlights:
- Staggering Growth in Mobile Exports: Mobile exports from India have reached a new high of $8 billion within the first seven months of FY24. This figure is 60% higher than the $4.97 billion recorded in the same period last year, averaging over $1 billion in mobile phone exports each month.
- Apple Leads the Charge: iPhones account for a substantial 62.5% of India’s total smartphone exports. In FY23, Apple, through its three vendors in India, exported iPhones worth $1.8 billion, which has now grown significantly.
- Impact of the PLI Scheme: The Production Linked Incentive (PLI) scheme for smartphones has been a game-changer. Union Minister Rajeev Chandrashekhar attributes this export milestone to the PLI scheme, highlighting that it has created over one lakh new jobs in 30 months and integrated Indian companies like Tata into Apple’s supply chain.
DGFT Sarangi on India’s Electronic Exports
Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi emphasized the “exponential” increase in electronics goods exports from India. The growth is largely driven by mobile phone exports by major players like Samsung and Apple. The sector’s expansion is evident as electronic goods exports rose by 27.7% to $15.5 billion during April-October of this fiscal year.
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Future Outlook: Diverse Export Sectors
The Indian government is actively working to diversify its export sectors. Alongside electronics, there is a focus on value-added agricultural products, renewable energy items, and electric vehicles (EVs). This diversification strategy aims to elevate India’s goods and services exports to $2 trillion by 2030. The EV industry, in particular, is expected to see a rise in exports, with major companies like Tata and Mahindra investing significantly in this segment.
Government Initiatives and FTAs
The government’s efforts to achieve export targets include enhancing ease of doing business, promoting automation, and boosting domestic manufacturing. Vendor development programmes are pivotal for the MSME sector, playing a crucial role in export growth. Additionally, India has inked free trade agreements with countries like the UAE and Australia and is in negotiations with the UK and the European Union to provide greater market access, especially to labour-intensive sectors like textiles and leather.
Ministerial Insights
Ashwini Vaishnaw, Minister for Railways, Communications, Electronics & Information Technology, expressed optimism regarding the telecom industry in India, which has evolved into an investment-oriented and employment-generating sector. He anticipates that mobile exports will exceed $10 billion in the current financial year 2022-23, reinforcing India’s commitment to becoming a global manufacturing hub under the AtmaNirbhar Bharat initiative.
In conclusion, the surge in mobile exports from India, especially in the smartphone segment, is a testament to the country’s growing prowess in the global electronics market. With government initiatives like the PLI scheme and strategic trade agreements, India is well on its way to establishing itself as a leading exporter in various high-value sectors.
