The India Cellular & Electronics Association (ICEA) claimed on Thursday that mobile exports from India will increase by 75% year on year to $5.5 billion (by value) in FY 2021-2022, owing to the production linked incentive (PLI) scheme for local handset manufacture.
“Mobile phone exports from India will increase by 75% from $US 3.16 billion in 2020-21 to over $US 5.5 billion in the current fiscal,” the handset industry body said, attributing this growth to the aforementioned scheme which is aimed at shifting global value chains (GVCs) to India and increasing India’s share in global exports.
“This impressive performance comes in the backdrop of three devastating Covid waves, loss of workforce, lockdowns and the worst ever crisis on the supply chain, including acute scarcity of chips and semiconductors,” ICEA said. ICEA represents companies Apple, Lava, Micromax, Xiaomi, among others.
“Government-led with its vision and trust in the mobile industry. The industry, in turn, has redefined Atmanirbhar Bharat as Make in India for the World,” said Pankaj Mohindroo, Chairman of ICEA.
ICEA revealed that apart from the jump in exports on a year-on-year basis, India is now exporting mobile handsets to “some of the most competitive and advanced markets in Europe and developed Asia”.
It is also predicted that India’s electronic goods exports will expand to more than $15 billion in 2021-22, up from $10.6 billion in 2020-21, owing to an increase in mobile phone exports. It is also projected to benefit related businesses such as IT hardware, hearing and wearable devices, and other companies that are currently reliant on imports.
To recall, the government has earmarked Rs.40,951 crores under the PLI plan for handset manufacture between 2020-21 and 2025-26, with participating companies being able to choose any 5 of the 6 years to accomplish their production commitments.
Samsung, Foxconn Hon Hai, Rising Star, Wistron, and Pegatron were among the five global businesses who participated in the PLI scheme, as were Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs, and Optiemus Electronics.
Approximately five years, the approved enterprises under the PLI scheme are estimated to generate total production of over Rs 10.5 lakh crores, with exports accounting for nearly 60% of that amount (Rs 6.5 lakh crores). It is also projected that about 8 lakh new jobs will be produced in the country during this time (2 lakh direct and 6 lakh indirect).
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