With growing smartphone exports, India is rapidly closing the gap with China and Vietnam. According to a report by The Economic Times, mobile exports from China and Vietnam decreased by 2.78 per cent and 17.6 per cent respectively in FY24 compared to the previous year. In contrast, India’s mobile phone exports saw a significant increase of 40.5 per cent.
The report indicated that India has absorbed nearly 50 per cent of the decline in mobile phone exports from China and Vietnam. Although China continues to be the leading exporter of mobile handsets, India is showing notable progress.
Data from the International Trade Centre (ITC) shows that Chinese mobile phone exports fell from $136.3 billion in FY23 to $132.5 billion in FY24, marking a 2.8 per cent decrease, which translates to a $3.8 billion drop, the report noted.
Similarly, Vietnam’s mobile phone exports declined from $31.9 billion in FY23 to $26.27 billion in FY24, a 17.6 per cent decrease, amounting to a $5.6 billion drop. The combined reduction in exports from both countries totaled $9.4 billion.
The ITC, a joint agency of the United Nations and the WTO, has been operational since 1968. It provides trade data for 220 countries and territories, covering 5,300 products.
Apple’s exports exceed $2 billion
Business Standard earlier reported that Apple Inc has significantly increased its iPhone exports from India, exceeding $2 billion in the first two months of FY25. This represents 81 per cent of India’s total iPhone production worth $2.6 billion.
In May, Apple again surpassed $1 billion in iPhone exports, mirroring its performance in April.
Under the production-linked incentive (PLI) scheme, the three Apple Inc vendors have a target to achieve a production value of $10.2 billion (including exports) in FY25. They have already reached 25 per cent of this target in just two months.
In FY25 so far, Foxconn Hon Hai, Apple’s leading vendor, contributed 65 per cent of the total exports, Wistron 24 per cent, and Pegatron the remaining 11 per cent. All three vendors are part of the smartphone PLI scheme, which is currently in its fourth year of a five-year plan.
Smartphones become fourth-largest export item
Smartphones became the fourth-largest export item from India, with a 42 per cent increase to $15.6 billion in FY24, moving up one spot from the previous year. India began collecting separate data for smartphone exports starting in April 2022. While petroleum products dominate India’s top export items, smartphones have now overtaken motor gasoline to become the fourth-largest exported commodity in FY24.
According to Commerce Department data in May, the surge in smartphone exports was driven by a 158 per cent increase in shipments to the US, valued at $5.6 billion, followed by the United Arab Emirates ($2.6 billion), the Netherlands ($1.2 billion), and the UK ($1.1 billion).
