Smartphones are now the fourth Largest Export item from India, with a 42% Increase in FY24.

Smartphones have become India’s fourth-largest export item, growing by 42% to $15.6 billion in fiscal year 24. This significant rise in the export ranks saw cellphones surpass motor fuel, ushering in a new era in India’s export environment.

India began separately recording smartphone export data in April 2022. Since then, the sector has shown excellent results. According to the Commerce Department, the spike in smartphone exports was mostly driven by a 158% increase in shipments to the United States, which totaled $5.6 billion. Other major markets are the United Arab Emirates ($2.6 billion), the Netherlands ($1.2 billion), and the United Kingdom ($1.1 billion).

According to preliminary estimates from the Indian Cellular and Electronics Association (ICEA), the total value of mobile devices produced in India for both export and domestic markets in FY24 increased by 17% year on year to ₹4.1 trillion ($49.16 billion).

This rise is partly due to the Indian government’s Production-Linked Incentive (PLI) policy, which has helped India become the world’s second-largest mobile phone manufacturing country after China. The PLI scheme has also played an important role in the China-Plus-One policy, which aims to encourage Chinese manufacturers to relocate to India in the face of geopolitical uncertainty. 

The PLI system benefits Apple’s three biggest vendors — Foxconn, Wistron India (formerly Tata Electronics), and Pegatron — as well as Samsung. Apple is expected to export mobile devices worth ₹1.2 trillion ($14.39 billion) in FY24, up 33% from ₹90,000 crore in FY23. ICEA figures show that exports contributed for over 30% of total output value in FY24, up from 25% in FY23.

The significant increase in smartphone exports demonstrates India’s growing significance in the global smartphone manufacturing sector, which is aided by strategic government initiatives and good market conditions. As India’s manufacturing capabilities improve, its involvement in the global electronics supply chain is expected to grow further.

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