As a result of the Union government’s production-linked incentive (PLI) scheme, electronics exports from the country are expected to increase from $10.6 billion in FY21 to around $15 billion in the current fiscal year.
Since 2014, the Union government has taken multiple steps to promote manufacturing in the country and ensure Bharat moves towards Aatmanirbharata. The schemes are bearing fruit.
In its latest report, India Cellular & Electronics Association (ICEA) said that the country's total value of exports of mobile phones is expected to cross Rs 43,500 crores during the current financial year ending March 31, 2022. It is a jump of 75 per cent over the 2020-21 period.
The total value of mobile phones exported from the country in 2020-21 was Rs 24,000 crores.
“We will very safely cross USD 5.7 billion of exports when we complete this financial year,” PTI quoted ICEA chairman Pankaj Mohindroo.
He further said, “The unprecedented increase in smartphone exports is a tribute to government-industry partnership under the most trying circumstances. Government led with its vision and trust in the mobile industry. The industry, in turn, has redefined Aatmanirbhar Bharat as Make in India for the World. We are just getting started.”
Earlier, the bulk of mobile phone export was limited to South Asia and Africa. But now, the phones manufactured in Bharat are being exported to markets in Europe and developed Asia, signifying massive improvement in the production quality.
Explaining the importance of this shift, the ICEA said, “These markets demand the highest levels of quality, and manufacturing units located in India are up to the task.”
This unprecedented success has been achieved in the backdrop of multiple Covid-19 waves and lockdowns. The global supply chain had almost come to a halt owing to the global pandemic.
“After an uncertain start in 2020, owing to multiple Covid waves, the industry stabilized 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 ICEA said.
Launching the scheme in April 2020, the Union government said, “… (PLI scheme) offers a production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units. The Scheme would tremendously boost the electronics manufacturing landscape and establish India at the global level in electronics sector.”
Buoyed by the success of the first phase, the Union government had extended the scheme in 2021. Five global companies: Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron, had participated in the phone PLI scheme.