Buoyed by the government's PLI scheme, exports of mobile phones from India are expected to cross Rs 43,500 crore during the current financial year ending March 31, 2022, according to the industry body India Cellular and Electronics Association.
ICEA said exports of mobile phones from India have already jumped about 75 per cent in one year to USD 5.5 billion (about Rs 42,000 crore) early this month from USD 3.16 billion (about Rs 24,000 crore) at the end of 2020-21.
"We will very safely cross USD 5.7 billion of exports when we complete this financial year," ICEA chairman Pankaj Mohindroo said.
The performance of the mobile phone sector comes against the backdrop of three devastating Covid waves, loss of workforce, lockdowns and the worst ever crisis on the supply chain, including acute scarcity of chips and semiconductors.
The export of mobile phones from India is driven by Apple and Samsung.
"The unprecedented increase in smartphone exports is a tribute to government-industry partnership under the most trying circumstances. Government led with its vision and trust in the mobile industry. The industry, in turn, has redefined Atmanirbhar Bharat as Make in India for the World. We are just getting started," Mohindroo said.
In the past, mobile phones from India were primarily exported to South Asia, Africa and parts of Middle East and Eastern Europe but now companies are targeting some of the most competitive and advanced markets in Europe and developed Asia.
"These markets demand the highest levels of quality, and manufacturing units located in India are up to the task," ICEA said.
ICEA said that the flagship PLI scheme's objectives of shifting global value chains to India and increasing share in global exports has been fully achieved.
"After an uncertain start in 2020, owing to multiple Covid waves, the industry stabilized operations in 2021 and has delivered results that exceed expectations. Increase in mobile phone exports also marks an important shift in the export basket which is gradually transforming from primary commodities to more value-added, high-end products driven by technology industries," ICEA said.
The mobile phone PLI saw participation from five global companies Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron and Indian champions, including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics.
During a 5-year period, the approved companies under the PLI scheme are expected to lead to total production of over Rs 10.5 lakh crores, of which nearly 60 per cent has to come from exports accounting for around Rs 6.5 lakh crores.
Under the Smartphone PLI Scheme, the government has allocated Rs 40,951 crore between 2020-21 and 2025-26, where participating companies are allowed to choose any 5 years out of the 6 years for meeting their production targets.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU