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A billion sets and more, India is not just a mobile importer now

Tejasvi Malhotra by Tejasvi Malhotra
15 October 2022
in Analysis, Economy
Mobile phone Exports
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Mobile phone Exports India: Throughout history, India was seen as dense by colonizers. The whites left the country to nosedive. That was the time when the turban was silent among world leaders. But nevertheless, Indians are known for just getting things done. And now, it’s time for the lion to roar. As recently realised by Biden at the G7 summit, it’s now the time for “world leaders to join hands with India.”

India in the twenty-first century has now become the world’s fifth-largest economy, and it is playing a significant role in the world to maintain peace. It’s time to realise that the days when India used to import the essentials are gone. Since Prime Minister Narendra Modi came to power, it has now emerged as an exporter of several goods and services.

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India as a major handset exporter worldwide

As recently reported, India’s monthly mobile export marked $1 billion threshold for the first time ever in September. They benefited greatly from the government’s Production Linked Incentive (PLI) scheme, which required global behemoths like Apple and Samsung to increase domestic production for both the domestic and international markets.

As per the Economic Times data, from April to September, mobile phone shipments doubled to more than $4.2 billion from $1.2 billion during the same time in 2021. Apart from this, in December 2021, handsets worth $770 million were exported from the country, marking the biggest monthly exports of Mobile phone. Further, from June to August 2022, nearly $700 million in exports per month were recorded.

From September 2021 to September 2022, the mobile phone exports marked an increase of more than 200 percent. Evidently, India is emerging as an unstoppable power boosting the availability of smartphones worldwide. Pankaj Mohindroo, chairman of India Cellular and Electronics Association (ICEA) had said, “To continue this growth, we are working on improving competitiveness through lower tariffs, improved logistics, labour reforms, and deepening of the ecosystem.”

Keeping in mind the burgeoning growth, it is pivotal that the main drivers of mobile phone exports include Samsung, along with Apple contract manufacturers Foxconn, Wistron and Pegatron. These are the leading international giants in the Rs 40,995 crore PLI programme exhibited in April 2020.

Read more: Forget SEZ, Modi govt.’s ODOP will be the backbone of India’s exports

India rose from obscurity to become a global economic powerhouse

According to ICEA data, earlier in 2016 – 17, only over 1 percent of mobile phone production was exported. However, that percentage took an upturn, marking almost 16 percent in 2021 – 22. Further, an increase to almost 22 percent of production is predicted in 2022- 23. Numbers are marking it crystal clear that the export value of mobile phones from India will continue to rise in the upcoming years, as per Statista.

Read more: Post-pandemic, India is strongly emerging as an export hub

PLI proved to be beneficial for exports 

Though the rise in rankings took some time, big changes were noticed only after the PLI scheme worth Rs 1.97 lakh crores was introduced. Since then, India’s share in the percentage of total global exports in Mobile phone has witnessed an upsurge.

In the financial year 2021-22, India registered its highest export in value terms. The data on India’s growing exports has been crystal clear, with double-digit growth being recorded in export value on a year-on-year basis.

The 2020 launch of the PLI scheme for smartphones was intended to divert the manufacturers away from dominating nations like China and Vietnam. With the help of this governmental programme, India is on a spree to surpass the two nations, which continue to export more mobile phones than any other nation in the world.

Interestingly, India’s export triumphs are coming at a time when economies across the world are witnessing slowdowns, with the United States technically entering into recession and Truss losing trust in her own land.  People’s consumption capacity all across the globe is declining, yet they are willing to buy Indian products. This simply speaks about a crucial role that India plays in the world order.

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Tags: ChinaEconomic PowerhouseEconomic SlowdownFoxconnICEA dataIndiaIndia Cellular and Electronics Association (ICEA)Liz TrussMobile ExportMobile ManufacturersMobile phone shipmentsPegatronPrime Minister Narendra ModiProduction Linked Incentive (PLI) schemeSamsungStatistaThe United StatesVietnamWistron
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