In a significant milestone for India’s economic growth, smartphone exports surged to an all-time high in the first 10 months of the fiscal year 2024-25. According to the Department of Commerce’s data, smartphone exports reached an impressive 18.31 billion dollars during the April-January period. This remarkable achievement places smartphones at the top of India’s export commodities by value, surpassing automotive diesel fuel exports, which stood at 16.04 billion dollars. In FY 2024-25, smartphones overtook traditional exports like diamonds, aviation turbine fuel, and automotive diesel fuel, which had historically dominated India’s export landscape.
The rise of smartphones as India’s top export marks a notable success story for the government’s Make in India initiative, launched in 2014. At that time, smartphones were ranked 167th among the country’s export products. This turnaround is attributed to the strategic efforts made by the Modi administration, notably through the productivity-linked incentive (PLI) scheme, which has been a game-changer in revitalising the electronics manufacturing sector.
Smartphone exports experienced a remarkable 54.7 per cent increase in the April-January period of FY 2024-25, compared to 11.83 billion dollars during the same period in FY 2023-24. This surge was largely driven by the ramped-up shipments to the United States, particularly in anticipation of global tariff tensions. Notably, Apple Inc.’s iPhones played a major role, with exports to the US soaring by 208 per cent, reaching a value of 1.63 billion dollars. Over the same period, total smartphone exports to the US reached 6.6 billion dollars, reflecting a 64 per cent year-on-year growth.
Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, heralded this achievement, declaring that smartphone exports had reached a historic milestone by crossing Rs 2 lakh crore in FY 2024-25. “Smartphone exports have achieved a new record of Rs 2 lakh crore, making mobile phones among the top exported goods from India. This represents a 54 per cent growth over FY 2023-24, with iPhone exports alone accounting for approximately Rs 1.5 lakh crore,” Vaishnaw said.
Vaishnaw attributed the record-breaking export performance to the decade-long partnership between the government and industry. He emphasised that smartphones had climbed from being ranked 167th in 2014 to becoming India’s largest export in FY 2024-25, a testament to the success of the PLI scheme. “The scheme has contributed significantly to the creation of lakhs of jobs, especially for women, and has expanded opportunities for Indian MSMEs,” he noted in a post on X.
The minister also highlighted the extraordinary growth trajectory of India’s electronics sector over the past decade. “Electronics manufacturing has increased more than fivefold, while electronics exports have grown more than sixfold in the last 10 years,” Vaishnaw remarked, noting that production is growing at a compound annual growth rate (CAGR) of over 17 per cent, while exports are expanding at a CAGR of over 20 per cent.
The expansion of India’s electronics manufacturing sector has been equally impressive, with over 400 production units now operational, producing a diverse range of components. Vaishnaw explained that India’s journey in electronics manufacturing mirrors the path taken by many other countries, starting with finished goods, moving on to assemblies, and now progressing to the manufacturing of components.
In a further push to strengthen India’s position in the global electronics supply chain, the Union Cabinet recently approved the Electronics Component Manufacturing Scheme with a funding of Rs 22,919 crore. Vaishnaw announced that the notification for the scheme would be issued soon, and consultations with the industry would begin for framing implementation guidelines. The scheme will cover both active and passive components, which are crucial for the production of consumer electronics, medical electronics, power electronics, automobiles, and electrical grids.
The scheme is expected to have a significant multiplier impact across various sectors. “The electronics components supported under this scheme will be used in consumer electronics, medical electronics, power electronics, automobiles, electrical grids, and practically every sector,” Vaishnaw added.
In related developments, global companies like Merck and Linde are setting up manufacturing facilities in India, and the government is actively supporting the domestic manufacturing of capital equipment. This move further reinforces India’s commitment to becoming self-reliant in the electronics sector.
The achievement of crossing Rs 2 lakh crore in smartphone exports is a remarkable testament to India’s growing dominance in the global electronics market. As India continues to build on its strong manufacturing foundation, it is poised to remain a key player in the global supply chain for electronics and technology.