India’s mobile phone exports: Monthly mobile phone exports hit a record 1 billion in September | Techy Kings

[ad_1]

Monthly mobile phone exports from India crossed the $1 billion mark (over Rs 8,200 crore) for the first time in September. They were encouraged by the government’s Production Linked Incentive (PLI) scheme, which encouraged global players such as Apple and Samsung to increase local production for domestic and foreign markets.

Mobile phone exports more than doubled to $4.2 billion between April and September, according to data exclusively available to ET. USD from 1.7 billion were sent. In the months of June-August of this year, the monthly export reached about 700 million.

According to the data, in 2022 September. estimated value of mobile phone exports compared to 2021 in September, increased by more than 200 percent. “To sustain this growth, we are focusing on increasing competitiveness through lower tariffs, better logistics, labor reforms and deepening the ecosystem,” Pankaj Mohindroo, chairman of handset industry body Indian Cellular and Electronics Association (ICEA), told ET.

Industry executives say the export growth was primarily driven by Apple’s contract manufacturers Foxconn, Wistron and Pegatron and Samsung, the global leaders in the Rs 40,995 PLI scheme announced in 2020. April, participants.

Aiming for $60B by FY26

Global majors account for around 75-80% of smartphone exports from India.

According to ICEA data, in 2016-2017 the export of mobile phones accounted for only about 1% of production, and in 2021-2022 increased to more than 16%. “2022-2023 the amount of production will increase to approximately 22 percent,” says the association.

in 2020 the smartphone PLI scheme introduced was aimed at weaning manufacturers away from dominant geographies such as China and Vietnam. Under this scheme, India is trying to catch up with the two countries that still lead the world in terms of mobile phone exports. India is aiming for 2025-26. to export mobile phones worth 60 billion

PLI success

The success of the smartphone PLI scheme has prompted the government to launch similar schemes in 14 sectors such as automobiles and auto components, IT hardware, telecom equipment and design, pharmaceuticals, solar modules, metals and mining, textiles and apparel, home appliances, drones and advanced chemical cells. batteries.

Under this scheme, mobile phones have also become the single largest source of electronics exports. With Apple and Samsung pressing the export pedal, India-made devices are now being sent to countries including the UK, the Netherlands, Austria and Italy, industry executives say. In the past, phones made in India were mainly exported to the Middle East, Africa and South Africa.

According to industry data, the export of electronic goods in 2022 April-September also increased by 54% to 10.2 billion. USD, from 6.5 billion USD 2021-2022 According to ICEA data, in April-September of this year increase in mobile phone exports to 2.5 billion

a long way

“PLI has helped mobile phone manufacturers leverage the scale that has made domestic manufacturing possible… (This) will eventually lead to economies of scale, which are the foundation of any sustainable manufacturing function,” Techarc principal analyst Faisal Kawoosa said. .

Along with this, as high-end smartphones like the iPhone 14 have also started manufacturing from India, the export contribution will also only increase, he added. “With the global economic situation turning bleak, India could use it to become an alternative affordable smartphone manufacturing hub supported by initiatives like the PLI scheme,” Kawoosa said.

Global duet

Two of Apple’s three contract manufacturers, Wistron and Foxconn, are in the second year of the five-year PLI scheme, while Pegatron, which started operations in April this year, is in the first.

Korean giant Samsung, which has been present in India for more than a decade, in 2022. September. reached the middle of the scheme. She still has two and a half years left. In fact, Samsung was the only company to meet production targets in the first year of the scheme, which was launched at the height of the Covid-19 pandemic.

Apple has cited the importance of India in its global strategy to diversify manufacturing and reduce dependence on China. Within 10 days of the global launch of its latest model, the iPhone 14, Apple has announced its production from the Foxconn plant in Tamil Nadu.

Experts say that under the PLI scheme, the government has projected an increase of Rs 10.5 crore over five years. production of Rs.6.5 million. of exports and 800,000 new jobs.

At the current growth rate, electronics exports could touch $20 billion in FY2022-23. 50% of all electronics exports in the next few years, ICEA estimates.

[ad_2]

Source link