India likely to see smartphone exports reach $20 billion this fiscal

New Delhi:  The country’s smartphone market, which is projected to cross $50 billion in value this year, is likely to see $20 billion worth exports in FY25, riding on ‘made in India’ Apple iPhones.

In FY24, the country saw smartphone exports surpassing $15 billion (with Apple’s share at over $10 billion). This fiscal, according to industry estimates, this figure is likely to cross $20 billion, further driven by iPhone exports.

Driven by the ongoing trend of premiumisation and thrust on local manufacturing, Apple and Samsung are leading the chart. The Indian smartphone market is evolving rapidly, with original equipment manufacturers (OEMs) increasingly focusing on premium launches to strengthen brand equity, showcase technological capabilities and improve profitability.

Owing to the production-linked incentive (PLI) scheme, Apple has already reached Rs 1 lakh crore in iPhone exports from India in the calendar year 2024.

Over the past four years, the Apple ecosystem has also generated 1,75,000 new direct jobs, with over 72 per cent of these roles filled by women, as per the government data.

Back in 2014-15, domestic mobile phone production stood at 5.8 crore units, which was increased to 33 crore units in 2023-24, with imports dropping significantly. Exports reached five crore units, and FDI increased by 254 per cent, highlighting the PLI scheme’s role in boosting manufacturing and investment.

The electronics sector in the country is projected to create 12 million jobs by 2027 — 3 million direct and 9 million indirect roles.

Direct employment opportunities are likely to include employment for nearly 1 million engineers, 2 million ITI-certified professionals, and 0.2 million specialists in fields like AI, ML and data science, while non-technical roles are expected to contribute 9 million indirect jobs, highlighting the sector’s immense potential to fuel economic growth, according to a latest report by TeamLease Degree Apprenticeship.

The electronics industry has an ambitious goal of achieving $500 billion in manufacturing output by 2030. To meet this target, the sector must grow five-fold over the next five years, bridging a $400 billion production gap.

Currently, domestic production stands at $101 billion, with mobile phones contributing 43 per cent, followed by consumer and industrial electronics at 12 per cent each, and electronic components at 11 per cent.

—IANS