India's Mobile Phone Exports Rose by 40%: Report China and Vietnam saw a decline in mobile exports in FY24 while India's exports surged by 40.5 per cent.
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India is swiftly narrowing the gap with China and Vietnam in mobile phone exports. While China remains the leader, India is gaining momentum. Chinese exports declined by 2.8 per cent to $132.5 billion in FY24, and Vietnam saw a more significant drop of 17.6 per cent to $26.27 billion. Conversely, India's mobile phone exports surged by 40 per cent to $15.6 billion in FY24, with iPhone exports making up 65 per cent of the total. As per the report from ET, India has absorbed nearly 50 per cent of the export reduction from China and Vietnam, equating to $9.4 billion.
The Indian government's smartphone production-linked incentive (PLI) scheme has played a pivotal role in this growth, drawing major companies like Apple, Foxconn, Pegatron, and Wistron to establish factories in India. Apple has notably doubled its production and exports from India over the past two fiscal years, reaching $10 billion in exports in FY24. Samsung, another PLI scheme beneficiary, is also expected to boost its mobile phone exports from India.
"The smartphone production-linked incentive (PLI) scheme was announced with an objective to capture supply chain shifts from China. The results are beginning to show now," a source quoted ET.
This surge in mobile phone exports marks a significant achievement for the Indian government, which has been actively positioning the country as a viable alternative to China for manufacturing and exports. The "China+1" strategy is gaining traction as companies seek to diversify their supply chains and manufacturing bases. The "China+1" strategy is a business approach that involves diversifying production beyond China, typically to another Asian country, to reduce dependence, mitigate risks, and capitalise on new opportunities.
New data from the International Trade Centre (ITC), via ET, reveals a significant decline in mobile phone exports from China and Vietnam. China's exports fell from $136.3 billion to $132.5 billion, a 2.8 per cent drop equivalent to a $3.8 billion loss. Vietnam's exports dropped by 17.6 per cent, from $31.9 billion to $26.27 billion, resulting in a $5.6 billion decline. The combined export loss for both countries totals $9.4 billion.
Small businesses inflating the mobile phone market
75 per cent of small business owners aged 18 - 30 are the most tech-savvy, with over 87 per cent in this demographic using smartphones for their daily business activities and accessing digital content. They are closely followed by those in the 31 - 40 age bracket. Interestingly, 36 per cent of these young BIZ Experiencess reported earning more than INR 15,000 per month. The pervasive use of smartphones underscores the internet's vital role in bridging infrastructure gaps and fostering technological inclusion among MSMEs at the grassroots level. Read more.
