China and Vietnam are thought to be the world’s largest smartphone sellers. These are thought to be the manufacturing heartland, but that appears to be changing. In fact, India has made significant progress in terms of smartphone exports.
With an increase of 83 percent in smartphone exports from the country this fiscal year, the total is expected to reach $ 5.6 billion, or Rs 42,000 crore. Smartphones worth Rs 23,000 crore were exported from the country last year.
The government’s Production Linked Incentive (PLI) scheme is said to be the reason for this. Smartphones manufactured in India are exported to a number of developed countries around the world.
PLI benefits Apple and Samsung the most.
Apple, the world’s largest technology company, and Samsung, of South Korea, have reaped the most benefits from this scheme. In addition, India, along with China and Vietnam, has emerged as a major smartphone manufacturing hub in the world. The country’s smartphone exports were only Rs 1,300 crore four years ago, in 2017-18. In 2018-19, it increased to Rs 11,200 crore, then to Rs 27,200 crore in 2019-2020.
Apple’s exports are expected to total Rs 12,000 crore.
The two companies that export the most smartphones from India are Apple and Samsung. Apple’s exports are expected to increase to Rs 12,000 crore this year. Models like the iPhone SE, iPhone 11, and iPhone 12 play a significant role in this. Samsung’s exports are expected to increase to Rs 20,000 crore as well.
Exports of smartphones from the country of manufacture and supply were impacted.
Due to production and supply issues caused by the Corona epidemic, smartphone exports from the country have been hampered. It was Rs 23,000 crore in the financial year 2020-21. The electronic market is currently experiencing numerous challenges. The lack of a semiconductor chip is one of them. In addition, the market has been harmed as a result of lockdown and other restrictions. In this context, the surge in smartphone exports from India is being cited as an example.
Many important components for smartphones are sourced from China, but relations between the two countries have recently deteriorated. This is why China’s supply of many components is either shut down or extremely slow. Despite the three waves of corona, workforce reductions, lockdowns, and the worst supply chain crisis in history, Pankaj Mahindra, chairman of the Indian Cellular and Electronics Association (ICEA), an industry-related organisation, said that smartphone exports are growing rapidly.
South Asia, Africa, and the Middle East are all receiving phones.
According to the ICEA, India used to export smartphones to South Asia, Africa, the Middle East, and Eastern Europe, but now it ships them to many developed countries around the world. Companies are now focusing on the most competitive and advanced markets in Europe and Asia, according to Mahindra. These markets have the highest quality demand, which is being met by manufacturing units in India.
What is the PLI Scheme, exactly?
The central government will encourage increased production and allow companies to export products made in India under this scheme. The PLI scheme’s goal is to encourage investors to work together to create a competitive environment.