‘Made in India’ iPhones Pushes Exports of Mobile Phones to $10 Billion

28 April 2023

With Apple expanding its smartphone manufacturing business in India and capturing 50% of the country’s market, India’s mobile phones export crossed $10 billion in Fy22-23. The newly opened Apple stores in Mumbai and Delhi are expected to push the local demand for iPhones upwards. India’s exports of mobile phones were valued at USD 9,796 million in 2022, up from USD 5,012 million reported a year earlier. The top five global destinations of India’s mobile phone exports are the United Arab Emirates, the United States, the Netherlands, the United Kingdom, and Italy. Take a look at India’s export picture of mobile phones.

India’s Exports of Mobile Phones Crossed $10 Billion in FY22-23

India’s electronic industry crossed $10 billion in FY22-23 as ‘Made in India’ iPhones are being manufactured in the country and new Apple stores have opened in major cities – Mumbai and Delhi. According to a report, exports of electronic goods were estimated at Rs 1,85,000 crore in FY22-23. The exports went up from Rs 1,16,936 crore in FY21-22, making a whopping 58% increase. The growth is led by locally-manufactured mobile phones.

Mobile phone exports rose from Rs 45,000 crore in FY 21-22 to Rs 90,000 in FY 22-23. India’s electronics export market plays a vital role in the growth of this sector. Here are the factors contributing to the growth of India’s electronics market.

                   ·         Apple Leads the Growth

The growth in India’s electronics sector has been driven primarily by the Apple ecosystem, which alone crossed a record $5 billion (Rs 4500 crore) in exports from India during FY23. According to a report, Apple is estimated to have clocked a 50% share of ‘made in India’ iPhones. Samsung accounts for about 40% market share.

Recently, India got two Apple stores, first one was opened in Mumbai on 18 April 2023 and the second one was opened in Delhi on 20 April. Apple is looking for a significant business opportunity in India which is a huge potential market, besides China and the United States. According to a report, India is home to 800 million users of mobile phones and has the potential to hit more than a billion smartphone users in the next five years.

                    ·         PLI Success

The performance-linked incentive (PLI) scheme is also a major factor behind the growth of India’s smartphone industry. The scheme for mobile phones serves as a model for other electronic segments to emulate this success increasing manufacturing and exports. According to a report, mobile phones alone are anticipated to contribute more than $50 billion worth of India’s exports by 2025-26.

India’s Mobile Phone Exports 2017-2022

In the last years, India’s exports of mobile phones have increased, and ‘made in India’ iPhones will further grow the industry. According to a report, smartphones exported from India totaled USD 149 million which rose considerably to USD 3,601 million in 2019. That dollar amount further increased to USD 9,796 million in 2022. Understand the stats through the given chart.

India’s Mobile Phone Exports by Destination Country

The United Arab Emirates is the top export destination for India’s mobile phones. In 2022, India exported smartphones worth USD 2,606 million to the UAE with a 26% share in value. The United States of America imported Indian mobile phones worth USD 1,284 million with a 13% share in value. That means the UAE and the U.S. together accounted for almost 40% of total India’s exports of mobile phones.

India’s other major export destinations of mobile phones are the Netherlands, the United Kingdom, Italy, Austria, Germany, the Czech Republic, Japan, and France. The below-given chart shows the stats of these countries. 

India is expected to match China’s production capacity of 45% to 50% for Apple’s iPhones by 2027. In 2022, India’s production capacity of Apple’s iPhones accounted for 10% to 15% overall. India is moving in a different direction, which is largely export-focused and led by the government’s performance-linked scheme (PLI) push. The government is also working to strengthen the electronic manufacturing ecosystem beyond mobile phones to boost its global share in IT hardware, electronic components, and so on.