India captured almost half of mobile phone export market amid China and Vietnam decline

Officials cited by The Economic Times claim that in the Financial Year 2024 (FY24), India’s exports of mobile phones increased by 40.5%. This impressive rise coincides with a drop in mobile phone exports from Vietnam and China.

Let’s examine the specifics:

During FY24, mobile phone shipments from China and Vietnam decreased by 2.78% and 17.6%, respectively. Conversely, India was able to seize about half of the market share that these other countries had lost. The production-linked incentive (PLI) program for smartphones in India, which sought to reroute the supply chain away from China, is responsible for the success.

Although China continues to be the world’s largest exporter of mobile phones, India has made notable progress. From $136.3 billion in FY23 to $132.5 billion in FY24, China’s exports of mobile phones fell. Comparably, from $31.9 billion in FY23 to $26.27 billion in FY24, Vietnam’s exports fell. India exported $15.6 billion worth of mobile phones in FY24, up from $11.1 billion in FY23.

India’s achievements are especially remarkable in light of China’s geopolitical challenges. Positive outcomes have been obtained from the China+1 strategy of diversifying industrial and supply chains. For example, Apple has made India its second iPhone production location, after China.

Businesses are encouraged to diversify their sourcing and manufacturing away from China by the China Plus One (C+1) policy. It entails expanding current operations in China by adding a second location for sourcing or manufacturing. Gaining access to new markets, risk diversification, and cost control are some advantages.

India’s government launched the Production Linked Incentive (PLI) Scheme to increase competitiveness and homegrown manufacturing. It offers financial incentives to qualifying businesses in several industries, including renewable energy, drones, IT hardware, pharmaceuticals, railroads, and cars.

Important suppliers like Foxconn, Pegatron, and Wistron (now owned by Tata) are located in India. These businesses opened plants in India after the PLI program was introduced. As a result, throughout the past two years, Apple’s output and exports from India have doubled.

India is becoming a strong player in the international mobile phone export market owing to the PLI’s success. With an emphasis on supply chain resilience and innovation, India is still making progress in this important sector.

You might also be interested in – India’s electronic manufacturing capacity set to reach center stage, Make it global export hub