There was a time when iPhones and high-end Android flagships felt like a distant dream for many of us. Well, those days are long gone. Not only are smartphones an integral part of our daily lives, but we are now a major player in the global smartphone exports game.
India has become the fourth-largest exporter of smartphones, with a staggering 42% growth in FY24, reaching a value of $15.6 billion. This surge in exports is primarily fueled by shipments to the United States, the United Arab Emirates, the Netherlands, and the UK.
Export Value of Mobile Phones from India from FY 2019 to 2020, With Forecasts up to FY 2026
Key Smartphone Export Destinations
The United States is the top destination for India’s smartphone exports, receiving 5.6 billion shipments, a 158% yearly increase. Following the U.S., the United Arab Emirates imported 2.6 billion worth of smartphones, while the Netherlands and the UK imported $1.2 billion and 1.1 billion, respectively.
Overall, the total value of mobile devices produced in India for both export and domestic markets in FY24 reached ₹4.1 lakh crore ($49.16 billion), marking a 17% year-on-year increase, according to preliminary estimates by the Indian Cellular and Electronics Association (ICEA).
As per a report from Business Standard, smartphones have advanced one position in the export rankings, surpassing motor gasoline from the previous year.
Growing Smartphone Demand
The ever-growing demand for smartphones has fueled a global manufacturing boom, and India is perfectly positioned to ride this wave. Major smartphone brands like Apple, Samsung, Xiaomi, and more have set up factories in India, transforming the country into a manufacturing powerhouse. These companies are churning out millions of devices, creating a surplus that’s ready to conquer international markets.
Policies that Power Progress
The government has rolled out attractive policies like tax breaks and incentives, making it a cost-effective option compared to traditional manufacturing hubs. Lower production costs translate into a competitive edge in the global market. It’s a win-win situation for both the companies and the Indian economy.
Let’s understand the reasons behind this incredible feat.
4 Key Reasons Fueling The Smartphone Manufacturing Growth
- Production Linked Incentive (PLI) Scheme: This scheme provides financial incentives to companies manufacturing smartphones in India. This encourages companies to set up factories and pushes them to increase production volumes, ultimately leading to more exports.
- Focus on Skilled Workforce Development: The government is investing heavily in training programs to create a skilled workforce for the electronics industry. This ensures a steady pool of qualified workers to meet the demands of the ever-growing smartphone manufacturing sector.
- Improving Infrastructure: Building robust infrastructure like dedicated industrial corridors and special economic zones makes it easier for companies to set up factories and streamline logistics. This translates into faster production cycles and efficient export processes.
- Rising Global Demand: The worldwide demand for smartphones continues to increase, and India is strategically positioned to fulfill this growing need. India’s capabilities in manufacturing and exporting high-quality devices have enabled it to effectively respond to the growing market requirements.
Beyond Smartphone Exports
The Indian smartphone story isn’t just about exports. The domestic market itself is witnessing phenomenal growth. The total value of smartphones produced in India, catering to both domestic and international markets, reached a staggering ₹4.1 lakh crore ($49.16 billion) in FY24.
This growth indicates a rapidly growing consumer base within India itself. With increasing disposable income and affordable data plans, more Indians are upgrading their devices and joining the smartphone revolution.
Innovation and Design on the Horizon
While India’s current focus is on manufacturing prowess, experts predict a shift towards innovation and design in the coming years. The rise of domestic players, coupled with government initiatives to promote research and development, suggests that India might soon become a leader in smartphone design and technology.
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FAQs
What were India's top exports before smartphones?
Traditionally, India's top exports were dominated by petroleum products. Smartphones have replaced motor gasoline to take the fourth spot.
How big is the smartphone market in India itself?
The Indian domestic market for smartphones is also booming! The total value of phones produced in India for both domestic and international markets reached a whopping ₹4.1 lakh crore ($49.16 billion) in FY24.
What's next for India's smartphone industry?
Experts predict continued growth, with India potentially becoming a leader in smartphone innovation and design in the coming years.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
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