Mobile phone exports will reach $5.5 billion from India

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Image source: WEBSITE: FREEPIK

Mobile phone exports will reach $5.5 billion from India

India’s mobile phone exports will increase by 75% from $3.16 billion in 2020-21 to over $5.5 billion in the current fiscal year, according to a report released on Thursday.

The main driver of this outstanding performance is the PLI program for smartphones launched on April 1, 2020, aimed at shifting GVCs to India and increasing India’s share of global exports.

“The unprecedented increase in smartphone exports is a tribute to government-industry partnership in the most difficult of circumstances. The government has led with its vision and confidence in the mobile industry. The industry, in turn, has redefined Atmanirbhar Bharat as Make in India for the We are just getting started,” ICEA President Pankaj Mohindroo said in a statement.

After an uncertain start to 2020, due to multiple waves of Covid, the industry stabilized in 2021 and delivered results above expectations.

The increase in mobile phone exports also marks a significant shift in the export basket which is gradually shifting from commodity to higher value-added high-end products driven by technology industries.

The PLI smartphone saw participation from five global companies – Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron – and Indian champions including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics.

Over a period of 5 years, companies licensed under the PLI scheme are expected to lead to a total production of over Rs 10.5 lakh crore, of which almost 60% will come from exports to the tune of Rs 6.5 lakh crore.

It is also expected that during this period, nearly 8 lakh new jobs (2 lakh direct jobs and 6 lakh indirect jobs) will be created in the country.

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