India's smartphone manufacturing industry has witnessed a remarkable surge in recent years, primarily driven by the government's push to attract global companies to invest and produce in the country. This endeavour has yielded substantial benefits for the Indian economy, leading to increased job opportunities, investments, and a rise in the share of global value chains.
Rajeev Chandrasekhar, Union Minister of State for Electronics & Information Technology, and Skill Development & Entrepreneurship, highlighted that major brands, including Apple and Samsung, are actively operating in India, along with a range of smaller brands, including Indian companies.
Chandrasekhar said, “All the major brands are certainly in India today and exporting — both Samsung and Apple, the big brands, and a slew of other smaller brands, including Indian ones. So we are at a stage where the PLI for smartphones has certainly translated into a very successful one creating jobs, investments, and increasing share of the global value chains (GVCs) of that category.”
Notably, giants like Apple and Samsung have made significant inroads into the Indian market, both directly and indirectly, contributing to the country's growing smartphone manufacturing ecosystem.
He said, “The companies are really now focused on growing their volumes and growing their exports. We have last year crossed one lakh crore in exports, which is a significant number considering that just eight years ago, we were not exporting, and almost importing 82 percent of all smartphones consumed in India. So it's a dramatic transformation and a dramatic expansion, both in terms of investments and volumes and exports in this particular category.”
The government's efforts to attract global companies have had a profound impact on India's economy. The underlying supply chain in the smartphone category is witnessing substantial investments and growth, as companies recognise the advantages of manufacturing in India.
“So a lot of the supply chains that have traditionally existed outside of India are also showing signs of moving to India. So I think we are at a very, very good place and there is a tremendous amount of tailwind for this category of products in electronics, which is a smartphone category.”
Read Here | Exclusive | Confident India-US partnership will shape the future of AI, says Rajeev Chandrasekhar
With the rapid expansion of its smartphone manufacturing capabilities, India has emerged as one of the top exporters of smartphones globally. Chandrasekhar stated that the future of India's smartphone manufacturing industry looks promising, with an expected growth rate of 35-40 percent in smartphone exports during the fiscal year 2023-24.
“We are on track to cross last year by, at least as I understand it, 35 to 40 percent. Last year, we were at Rs 1 lakh crore of exports. Smartphones are already the top five exported products from India today. So we have already crept into the top five as a category of exports.”
The government's initiatives, such as the Production-Linked Incentive (PLI) scheme, combined with increased investments, will further fuel the expansion of the sector. As a result, the value added in the smartphone manufacturing process will continue to increase, bringing economic benefits and establishing India as a global hub for smartphone production.
The sector's expansion has not only contributed to economic growth but also created job opportunities and strengthened India's position in the global value chains. With a promising future ahead, India is set to solidify its status as a leading force in the global smartphone manufacturing industry.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
2024 Lok Sabha Elections | Punjab — the multi-cornered fight and its implications
May 29, 2024 9:07 AM
Lok Sabha Election 2024: PM Modi holds rally in Jharkhand, West Bengal ahead of final phase of polling
May 28, 2024 11:59 PM
Lok Sabha elections phase 6 voter turnout hits 63.37%, women voters outnumber men
May 28, 2024 10:46 PM