Phone exports India: India has come a long way from the time of policy paralysis to framing laws to improve the ease of doing business in the country. In all his economic speeches, PM Narendra Modi has been ensuring the retail and institutional investors both domestic as well as foreign to invest in India. He has been regularly highlighting the positive push by the Union government as well as policy certainty, continuity of schemes and stable political environment.
Apparently, these reformist and development-oriented policies and decisions have been positively impacting India’s success story and making the nation Atma Nirbhar in true sense.
Phone exports soar to new highs
After Independence, all the successive governments expressed concerns over the increasing dependence on foreign nations to cater the needs and requirements of our expanding neo-middle class. But as the famous saying goes, actions speak louder than words. With relentless push PM Narendra Modi has scripted a remarkable turn around and India is regularly witnessing positive import and export numbers.
Evidently, the latest mobile phone export numbers are a shining example of how effectively the flagship policies like Production Linked Incentives (PLI) have made a great impact on ground. In the first seven months of this Financial Year 2022-2023, the mobile phone exports have crossed the $5-billion mark. It is more than double the figure of $2.2 billion that the nation registered during the same time period, last year.
As per the government officials, if the current pace persists, India will breach the numbers of FY22 as early as December. The export numbers may end up touching the figure around $8.5-9 billion by the end of this Financial Year (FY23). Notably, last year, India exported mobile phones worth $5.8 billion.
India has been witnessing resurgent record setting figures for quite some time now. Apparently, in September, India exported mobile phones worth $1 billion. But the global slowdown caused a minor drop and the mobile phone exports in October were to the tune of $900 million.
Currently, the government has set an ambitious target of $60 billion export of mobile phones by the year 2025-26.
PLI Scheme nothing short of magic wand
Sharing the positive development, MoS Electronics and Technology Rajeev Chandrasekhar lauded the leadership of PM and the revolutionary PLI scheme.
As per the official data, taking advantage of the PLI scheme, Apple and Samsung have increased their production and now accounts for nearly 90% of India’s mobile phone exports.
With a boom in the export sector, India has achieved remarkable success in cutting down on our import dependence. As per the latest numbers by the India Cellular and Electronics Association (ICEA), mobile imports have come down heavily and now stand at around 5% in FY22 which was earlier as high as 78% in 2014-15. It is expected to further come down to around 4% in the next final year.
As per ICEA, at the far end of UPA 2.0, its failures badly impacted India’s growth numbers. Apparently, the cell phone production stood at Rs 18,900 crore with miniscule figures in exports. But now, the mobile phone production is expected to rise to Rs 3.25 lakh crore in 2022-23.
As per ICEA data, mobile phone exports only accounted for around 1% of production in 2016-17. It went to over 16% in 2021-22 and as per the growth trend, it is expected to touch around 22% of total production in 2022-23.
The major reason for this rising number is the growth-oriented policies of the Modi government.
To increase exports, the industry has formed the Mobile Electronic Devices Export Promotion Council. It works in collaboration with the various ministries of commerce and electronics and Information and Technology.
Between 2017-20, the government deployed the phased manufacturing programme to Solve the issue of import substitution. But the major Philip took place after the introduction of the PLI scheme in 2020. The Modi government focused on increasing exports and becoming a major part of the global supply chains. The PLI scheme was launched as the nation’s first and flagship scheme for smartphones with an outlay of Rs 40,995-crore. This successfully drew several investors into India from other major hubs like China and Vietnam.
Owing to the PLI scheme, the top smartphone manufacturers like Apple and Samsung started preferring to make their products in India.
But as a nation, India should not contend with this success and should push for more and aggressively push to become the biggest manufacturer of smartphones in the world dethroning China.
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