India Rises as Key Player in Mobile Phone Exports with 40% Increase

India is rapidly closing the gap with China and Vietnam in the realm of mobile phone exports. While China still leads, India is making significant strides. Chinese exports declined by 2.8% to $132.5 billion in FY24, and Vietnam experienced a more substantial drop of 17.6% to $26.27 billion. In contrast, India’s mobile phone exports soared by 40% to $15.6 billion in FY24, with iPhone exports constituting 65% of the total. According to a report from ET, India has absorbed nearly 50% of the export reduction from China and Vietnam, amounting to $9.4 billion.

A key driver of this growth is the Indian government’s smartphone production-linked incentive (PLI) scheme, which has attracted major companies like Apple, Foxconn, Pegatron, and Wistron to set up 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 beneficiary of the PLI scheme, is also expected to increase its mobile phone exports from India.

This surge in mobile phone exports represents a significant milestone for the Indian government, which has been actively promoting the country as a viable alternative to China for manufacturing and exports. The “China+1” strategy, which involves diversifying production beyond China to reduce dependency and mitigate risks, is gaining momentum as companies seek new opportunities.

Data from the International Trade Centre (ITC), as reported by ET, indicates a notable decline in mobile phone exports from China and Vietnam. China’s exports fell from $136.3 billion to $132.5 billion, a 2.8% decrease equivalent to a $3.8 billion loss. Vietnam’s exports dropped by 17.6%, 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.

In addition, a significant portion of small business owners aged 18-30 are highly tech-savvy, with over 87% using smartphones for daily business activities and digital content access. This demographic is closely followed by those in the 31-40 age bracket. Notably, 36% of these young entrepreneurs reported earning more than INR 15,000 per month. The widespread use of smartphones highlights the internet’s crucial role in bridging infrastructure gaps and fostering technological inclusion among micro, small, and medium-sized enterprises (MSMEs) at the grassroots level.

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