Indian Smartphone Exports Surge 42% to $15.6 Billion in FY24

Smartphones have ascended to become the fourth-largest export item from India, experiencing a significant growth of 42% to reach $15.6 billion in the fiscal year 2024 (FY24). This milestone highlights India's growing prowess in the electronics manufacturing sector, as detailed in a recent RBI Bulletin report.

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Climbing the Export Rankings

In the export rankings, smartphones have moved up a notch, surpassing motor gasoline from their previous position. This development follows India’s decision to begin tracking smartphone export data separately starting from April 2022. Despite this impressive growth, petroleum products still hold the top spot in India's export hierarchy.

Key Export Destinations

The United States stands out as the top destination for Indian smartphone exports, importing $5.6 billion worth of devices, a staggering 158% increase year-on-year (YoY). Following the US, the United Arab Emirates imported $2.6 billion worth of smartphones, with the Netherlands and the United Kingdom importing $1.2 billion and $1.1 billion, respectively.

Surge in Domestic Production

The total value of mobile devices produced in India, encompassing both exports and domestic consumption, reached ₹4.1 lakh crore ($49.16 billion) in FY24. This represents a robust 17% increase YoY, based on preliminary estimates by the Indian Cellular and Electronics Association (ICEA).

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Impact of the PLI Scheme

The impressive growth in smartphone exports can be largely attributed to the government's production-linked incentive (PLI) scheme. This initiative has significantly boosted India’s position in the global mobile phone manufacturing industry, placing it second only to China. 

The PLI scheme has also been integral to the China-Plus-One strategy, which encourages companies with manufacturing bases in China to consider India as an alternative due to geopolitical tensions between China and the US.

Among the beneficiaries of the PLI scheme are major firms like Apple’s suppliers—Foxconn, Wistron India (now Tata Electronics), and Pegatron—as well as Samsung. Apple's contributions have been particularly noteworthy, with its export value expected to exceed ₹1.2 trillion ($14.39 billion) in FY24, up 33% from ₹90,000 crore in FY23.

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Increasing Export Share

Preliminary estimates suggest that exports accounted for nearly 30% of the total production value in FY24, an increase from 25% in FY23, according to ICEA data.

In conclusion, the remarkable rise in smartphone exports not only signifies India's expanding role in the global electronics market but also highlights the effectiveness of targeted government policies in driving industrial growth and diversification of export portfolios.

Also Read: India Likely to Grow by 7.5% in Q1, Says RBI Bulletin