India’s Smartphone Exports Reach Rs 1.75 Lakh Crore; Boosted By PLI Scheme

India’s smartphone exports have seen an impressive 54% growth, crossing Rs 1.75 lakh crore ($21 billion) during the first 11 months of FY2024-25, outpacing the government’s initial target of Rs 1.68 lakh crore for the year.

This surge highlights the success of the government’s Production-Linked Incentive (PLI) scheme, which has played a pivotal role in attracting global companies to manufacture smartphones in India.

Surge In Exports

The significant rise in exports marks a major milestone for the Indian economy, with smartphones driving the nation’s electronics goods exports.

Minister for Electronics and Information Technology (MeitY) Ashwini Vaishnaw had originally estimated smartphone exports to reach $20 billion (Rs 1.68 lakh crore) by the end of the current fiscal year, but this figure has already been surpassed within the first 11 months.

The Apple iPhone supply chain has been a major driver of this growth, contributing around 70% of total smartphone exports from India.

The Tamil Nadu-based Foxconn plant, which is a key supplier for Apple, accounted for nearly half of these exports. Exports from the Foxconn facility have risen by over 40% compared to the previous year.

Other contributors include Tata Electronics, which acquired the Wistron factory in Karnataka, accounting for 22% of exports.

Additionally, the Pegatron plant in Tamil Nadu, now partly owned by Tata Electronics, added another 12% to the total smartphone exports.

South Korean tech giant Samsung contributed approximately 20% of India’s smartphone exports.

Impact Of The PLI Scheme

The PLI scheme, launched to boost domestic electronics manufacturing, has attracted a cumulative investment of Rs 10,213 crore as of December 2024.

It has generated over 1.37 lakh direct jobs and increased India’s mobile phone production from about 60 million units in 2014-15 to an estimated 330 million units in 2023-24—a more than fivefold increase.

India’s transition from being a mobile phone importer to a mobile phone exporter has been a direct result of these policies.

As Union Minister of State for Electronics and IT Jitin Prasada highlighted, “India has become a mobile phone exporter now from a mobile importing country in 2014-15.”

Economic Growth & Future Prospects

The success of India’s mobile phone exports is reflected in both the growth in production value and the increasing self-sufficiency in mobile manufacturing.

In terms of value, mobile production has risen from Rs 19,000 crore in 2014-15 to Rs 422,000 crore in 2023-24, growing at a compound annual growth rate (CAGR) of 41%.

Furthermore, India now produces 99.2% of the mobile phones consumed in the country, reducing reliance on imports.

The government’s continued focus on manufacturing reforms and the success of the PLI scheme promises to further elevate India’s role as a global hub for electronics manufacturing and exports, ensuring sustained economic growth and job creation in the sector.

Also Read: Indian Stock Market Rises, Pharma & Auto Sectors Drive Growth