Despite the economic effect of the Covid-19 pandemic, such as lockdowns, loss of labour, supply chain crisis, India’s mobile phone exports are expected to cross the Rs 43,500 crore mark in the current financial year.
According to the India Cellular and Electronics Association (ICEA), mobile phone exports have increased up to 75 per cent from Rs 24,000 crore in 2020-21 to Rs 42,000 in just 11 months this year.
ICEA chairman Pankaj Mohindroo “After an uncertain start in 2020, owing to multiple Covid waves, the industry stabilized operations in 2021 and has delivered results that exceed expectations. Increase in mobile phone exports also marks an important shift in the export basket which is gradually transforming from primary commodities to more value-added, high-end products driven by technology industries.”
He gave credit to the government-industry partnership under Production Linked Incentive Scheme ( PLI ) for large scale electronics manufacturing that helped keep the industry afloat under the most trying circumstances.
He said, ” Government-led with its vision and trust in the mobile industry. The industry, in turn, has redefined Atmanirbhar Bharat as Make in India for the World. We are just getting started.”
PLI Driven Growth
The government’s flagship PLI scheme has helped shift global value chains to India and also acquire a substantial share in exports in the global market.
Earlier, mobile phones manufactured in India were majorly exported to South Asia, Africa, the Middle East and Eastern Europe. However, the government’s industry-friendly policies boosted confidence in manufacturers to enter more competitive markets in Europe and Asia.
“These markets demand the highest levels of quality, and manufacturing units located in India are up to the task,” ICEA said.
The growth is driven by major smartphones companies such as Samsung, Apple, Foxconn Hon Hai, Rising Star, Wistron and Pegatron and Indian champions, including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics, entering India via PLI scheme.
Under the Smartphone PLI Scheme, the government has allocated Rs 40,951 crore between 2020-21 and 2025-26, where participating companies can choose any five years out of the six years to meet their production targets.
