Smartphones have catapulted into the fifth largest export in terms of value amongst the top 20 commodities based on their international harmonised code (IHS) in the country in FY23, from being at number nine in the pecking order in FY22.
Those above them include various HS codes of fuel (diesel, aviation and motor gasoline) and of course diamonds (cut or polished or otherwise other than industrial use).
IHS is a globally harmonised identification for a particular specific product which is used for the export and import of the commodity across the world.
According to data released by the Ministry of Commerce which has been analysed by the Indian Cellular & Electronics Association of India (ICEA), exports of smartphones (not feature phones which have a different HS code) have nearly doubled hitting Rs 88,726 crore in FY23 over Rs 45,000 crore in FY22 (when smartphones were represented in three HS codes).
The top four include automotive diesel fuels not containing biodiesel confirming to standard 2796 diamonds other than industrial diamonds cut or otherwise worked but not mounted or set aviation turbine fuel and motor gasoline conforming to certain standards.
In FY22, according to ICEA, smartphone exports were at Rs 45,000 crore or US $ 5.7 billion putting them in the ninth position in the pecking order.
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The climb is significant as ICEA has projected that in FY23 the industry would hit exports of Rs 120,000 crore and reach over Rs 400,000 crore by FY26, a plan endorsed by the government in its electronics policy.
Apple Inc of course has played a key role in upping the rank as it accounted for half of the value of exports followed by Samsung in FY23. By FY26, it hopes to shift 25 per cent of its production capacity from China to India which is equivalent to US $ 20 billion.
To put it into perspective, in FY23, the gap between smartphones and the number four ranking product which is motor gasoline conforming to a certain standard is not too steep which is currently pegged at Rs 119,716 crore. Also, according to Icra, diamond exports are expected to fall by 10-15 per cent due to the global recession and its impact on demand. So, if smartphone exports reach Rs 4 trillion, it could give both a run for their money.
However, the import intensity of exports of smartphones still remains high with value addition ranging from 12 per cent to 18 per cent only. But the production-linked incentive scheme, by offering financial incentives to eligible players, hopes this would go up to 40 per cent by FY26 or the last year of the mobile device PLI.
The top five commodities and the value of their exports
| Commodity with HS code | Value of exports in Rs crore (FY23) |
Automotive diesel fuel, confirming to standard IS 1460
304,636
Diamond (other than industrial diamond) cut or otherwise worked but not mounted or set
1,76,578
Aviation turbine fuel
138,546
Motor gasoline confirming the standard IS 2796
119,716
Smartphones
Source: Ministry of Commerce data analysed by ICEA
