Mobile phone exports from India to touch $5.5bn

BUSINESS DESK: Mobile phone exports from India will increase by 75 per cent from $3.16 billion in 2020-21 to over $5.5 billion in the current fiscal, a report said on Thursday.

The primary driver of this outstanding performance is the smartphone PLI Scheme launched on April 1, 2020, aimed at shifting GVCs to India and increasing India’s share in global exports.

“The unprecedented increase in smartphone exports is a tribute to government-industry partnership under the most trying circumstances. The 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. We are just getting started,” Pankaj Mohindroo, Chairman of ICEA, said in a statement.

After an uncertain start in 2020, owing to multiple Covid waves, the industry stabilised operations in 2021 and has delivered results that exceed expectations.

Increase in mobile phone exports also marks an important shift in the export basket which is gradually transforming from primary commodities to more value-added, high-end products driven by technology industries.

The smartphone PLI saw participation from five global companies — Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron — and Indian champions, including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics.

During a 5-year period, the approved companies under the PLI scheme are expected to lead to total production of over Rs 10.5 lakh crore, of which nearly 60 per cent will be contributed by exports to the tune of Rs 6.5 lakh crore.

It is also expected that during this period, nearly 8 lakh new jobs (2 lakh direct and 6 lakh indirect jobs) will be created in the country. (The Economic Times)