India’s Smartphone Exports Breach ₹20,000 Crore Mark in November
Context:
In a historic achievement, India’s smartphone exports crossed the ₹20,000 crore mark for the first time in a single month.
About the Record-Breaking Export: According to data submitted by companies and industry associations, smartphone exports in November 2024 reached ₹20,395 crore. This figure marks a staggering 92% year-on-year increase compared to November 2023, when exports stood at ₹10,634 crore.
This milestone underscores India’s growing strength as a global smartphone manufacturing and export hub, driven by significant policy incentives and industry participation.
Companies Leading the Way:
The record-breaking export numbers were led by global giants Apple and Samsung, who together dominated the export landscape in November.
Key Contributors Driving the Growth:
The growth in smartphone exports has been driven by key players in Apple’s supply chain and Samsung’s production operations:
- Foxconn: Foxconn’s iPhone factory in Tamil Nadu emerged as the single largest contributor to India’s smartphone exports.
- Tata Electronics: Tata Electronics’ facility in Karnataka ranked as the second-largest contributor.
- Pegatron: Pegatron followed as the third major contributor among Apple’s vendors.
Apart from these vendors, Samsung and Indian companies have also played a vital role in driving the overall export numbers.
- Apple’s Contribution: Apple spearheaded the growth, with iPhones accounting for exports worth ₹14,000 crore in November. This surpassed Apple’s previous monthly record of ₹12,000 crore achieved in October 2024.
- For the first time, Apple exported over 80% of the total production value of iPhones assembled in India by its three major vendors.
- Samsung’s Role: South Korean giant Samsung followed closely, playing a pivotal role in contributing to the export numbers alongside Indian companies and merchandise trade partners.
Drivers of This Rise -The PLI Scheme:
Impact of the PLI Scheme:
- Under the PLI scheme, smartphone manufacturing and exports have seen sharp growth, helping India leapfrog in global rankings.
- Smartphones, which were ranked 23rd in India’s export list in 2019, have now become the third-largest individual commodity export.
- Electronics exports overall have risen from the seventh spot in 2019 to the third position so far in FY25. Apple, in particular, has surpassed its PLI target of exporting 70-75% of its production value in FY25.
Data Indicators of This Growth:
The strong performance of the smartphone industry is reflected in both production and tax contributions:
- Export Data:
- November 2023: ₹10,634 crore
- November 2024: ₹20,395 crore (92% growth)
- GST and Duties Contribution: The India Cellular & Electronics Association (ICEA), in its October 2024 assessment, highlighted the industry’s significant fiscal contributions: Between 2021 and 2024, against a PLI disbursement of ₹5,800 crore, the smartphone industry contributed ₹1.1 trillion in incremental goods and services tax (GST) and duties on mobile components.
These data points underline the industry’s pivotal role in both exports and revenue generation for the Indian economy.
What It Means for the Industry and Economy:
The record-breaking smartphone export numbers carry broad implications for the Indian economy and manufacturing sector:
- Strengthening India’s Global Position: India is cementing its position as a leading global hub for smartphone production and exports, competing with established manufacturing giants like China and Vietnam.
- Job Creation and Investment: The success of the PLI scheme and increased manufacturing activity are driving employment and attracting further investments in the electronics ecosystem.
- Boost to Foreign Exchange: The sharp rise in exports contributes significantly to foreign exchange earnings, reducing trade deficits and supporting economic growth.
- Technology Transfer and Infrastructure Growth: Increased collaboration with global players like Apple and Samsung brings technology advancements and infrastructure development, benefiting ancillary industries.
