Smartphones are now the 4th largest export item in India with 42% growth in 2024- Report

tech.hindustantimes.com:

The Indian Commerce Department shared a detailed report about the current largest export items in the country. In the report, it was highlighted that smartphone holds the fourth position surpassing motor gasoline to become the largest exported commodity in the year 2024. The smartphone export saw a growth of 42 percent with a value of $15.6 billion. Experts believe that the growth was recorded due to the new production-linked incentive (PLI) scheme, know more about the report.

According to the Ministry of Commerce report (Via Business Standards), the boost in smartphone export was highlighted due to the 158 percent increase in shipments to the US which was valued at $5.6 billion. After the US, the UAE shipment was valued at $2.6 billion and for the Netherlands, it was $1.2 billion. Overall, India's mobile phone production skyrocketed in FY24 by reaching $49.16 billion. The report highlighted that it is a 17 percent year-on-year increase compared to the previous year. This data showcases how smartphone manufacturing in India has a bigger hold over the economy after the major petroleum products.

Notably, the reason behind the massive growth was speculated to be India's production-linked incentive (PLI) scheme which also made India, the second-largest mobile phone manufacturing country. Under the PLI scheme, there are several major players leading the market: Apple, Foxconn, Samsung, and others. The PLI scheme also had a major impact on the China-Plus-One strategy as many giants were propelled to shift their operations from China to India.

Apple is reportedly driving a major force in India's mobile phone exports as its outbound shipments are expected to cross $14.39 billion in 2024, which will showcase a 33 percent growth compared to FY 23, according to ICEA data. This data not only showcases India's global positioning but also how major schemes such as PLI have been attracting global leaders to build their business in the country.

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