Exports of electronics goods from India reached an all time high of Rs. 8,806 crore, in December 2020. Mobile phones accounted for 35% of the value of these exports, being the highest contributor. The total export value for mobile phones in India was Rs. 3061 crore, which is 50% higher than exports in December 2019. According to the India Cellular and Electronics Association (ICEA), the industry is “overcoming unprecedented challenges" brought by the pandemic and is on the path to regaining the “momentum envisaged in the National Policy on Electronics 2019 (NPE 2019)".
“It may be noted that backed by the PLI scheme, during the covid period industry has made substantial investments of more than ₹2000 Crores. Electronic Goods exports for the current year have crossed Rs. 50,000 Crore mark despite COVID-19 pandemic and complete washout of production for 45 days," said Pankaj Mohindroo, chairman, ICEA. “The mobile handset industry has catered to the domestic demand during the pandemic as well as exports of more than Rs. 14000 crores till December 2020," he added.
Further, the industry body said rolling out the Remission of duties and Taxes on Exported Products (RoDTEP) scheme would help boost exports even more. The ICEA had written to the government, asking for RoDTEP to be introduced for the sector, before the Union Budget this year. The government also increased customs duties on certain components during the Union Budget this year, and the industry body recommended a reversal of the same.
Boosting electronics exports is high on the government agenda right now. The Narendra Modi-led government announced its production linked incentive (PLI) scheme for the same last year. The scheme, which offers 4-6% cash incentives on incremental sale of mobile phones manufactured in India, for the next five years. The first companies approved under the mobile phones PLI scheme are expected to produce products worth Rs. 10,50,000 crore in the next five years, of which approximately 60% will be exported.
India also extended the PLI scheme to IT products recently, which is expected to add Rs. 2.45 lakh crore to the country’s electronics exports in the next four years.
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