The last 6-7 years have witnessed India ’s increasing push towards digitization. Modi government emphasized reducing imports as well as producing enough electronic products to export. Now, the boom has beaten previous export records.
India’s record-breaking electronic exports
According to the latest data by the Ministry of Industry and Commerce, India exported electronic goods worth Rs 83,000 crore ($11 billion) in the first three quarters of 2021-22. Remarkably, it is a 49 per cent increase over previous year exports of first nine months. In 2019, India’s export figures for the first 9-month were worth only Rs 56,000 crores.
Experts are hoping that these early trends will help in India’s target of achieving electronic export figures over $15 billion. Moreover, optimists of the bunch also believe that burgeoning electronic exports will help India achieve a total export target of $120 billion by 2026.
Read more: India’s exports hit record high riding on the success of the PLI schemes
Smartphone exports are catalysts of change
Industry experts have confirmed that India’s electronic exports have risen due to the rise in the value of smartphones exported from the country. Data released by India Cellular and Electronics Association (ICEA) confirmed that India’s total mobile export in 2019-20 was worth over Rs 30,000 crores. However, in 2020, India registered the same figure in the first nine-month only.
Experts are of the opinion that India’s electronic export numbers have higher potential, but supply chain disruption due to covid-19 halted its growth.
Talking to ThePrint, Sandeep Narula, Chairman of Electronics and Software Promotion Council (ESC), a body under the Indian government, said, “Keep in mind that India imports a lot of components for electronic goods. But since these supply constraint issues have persisted, exports in this sector are likely to reach $15 billion by the end of this fiscal,”
PLI Scheme is a game-changer
The Union government is incentivizing smartphones production in the country. The government has allocated Rs 41,000 crores for the PLI scheme in smartphones. The scheme became an instant hit and in 2021, India’s mobile phone registered 250 per cent growth.
Ajay Sahai, Director General of Indian Export Organisations (FIEO) credited the Modi government’s PLI scheme for this achievement. He also said that due to streamlining of investments, they have matured in this sector. He cited Apple exporting their products as an example of PLI’s success.
Read more: PM Modi’s vision for Digital India is now bearing fruit
From import-dependent to the exporter
It was not long ago that India used to import the bulk of smartphones and other electronic components. Sahai informed that India’s smartphone import, which used to be worth $24-25 billion has been brought down to $5 billion.
Read more: From an importer to an exporter: How India became a manufacturing hub of smartphones under PM Modi
India is well on its way to bringing down mobile phone import dependence to zero. With companies running out of China, and a huge working-age population in India, it should not be surprised that India emerges as the backbone of the world’s electronic market.