India’s Mobile Manufacturing Projected to Soar to $50 Billion in FY24

On December 7th, Union Electronics and IT Minister Ashwini Vaishnaw revealed that mobile phone production in the country is expected to reach $50 billion in the current fiscal year. Additionally, he projected that exports from this sector would amount to $15 billion. The minister highlighted that the nation’s overall exports are on the brink of reaching $1 trillion in the near future.

All About the Indian Mobile Manufacturing

In a press conference, Minister Vaishnaw emphasized that mobile phones have now become the fourth-largest export category from the country. He anticipates that within the next year or two, mobile phone and electronics exports will secure a position in the top 2 or top 3 categories on the export list. Presently, the top five export categories include processed petroleum, diamonds, iron, steel, and pharmaceuticals.

Since October 2022, India has consistently recorded smartphone exports exceeding $1 billion. According to Commerce Department data, smartphone exports reached $6.53 billion in the first half of the 2023-24 fiscal year, compared to $10.95 billion for the entire 2022-23 fiscal year. It’s important to note that there is a two-month lag in the data.

A significant portion of smartphone exports is attributed to Apple India, accounting for 62% of all smartphone exports. During the April-October period of FY24, Apple exported iPhones valued at $5 billion through its three Indian vendors.

Overall, electronic exports from the country amounted to $15.77 billion in FY24, a notable decrease from the previous year’s $28 billion. Minister Vaishnaw pointed out that the rapid increase in smartphone exports reflects the swift diversification of India’s export basket, attributing this success to the government’s ‘Make in India‘ initiative.

He stated, “The country’s economy is at a major inflection point. India has reached a point where we are getting ready to achieve $1 trillion worth of exports very soon.” In the fiscal year 2023, India reported total exports of $775.7 billion, comprising merchandise exports valued at $450.4 billion and services accounting for $325.4 billion, as reported by Business Standard.