India’s Remarkable Success in Mobile Phone Exports: Is the China+1 Strategy Working?
India’s Rising Share in Smartphone Exports
India is making significant strides in the mobile phone export market, outpacing both China and Vietnam. Global trade data indicates that while China and Vietnam experienced declines in exports, India’s exports surged by a remarkable 40.5% in FY24 alone. This impressive growth has positioned India as a key player in the supply chain shift from China to other countries.
The success of India’s mobile phone exports can be attributed to the government’s strategic initiatives, particularly the smartphone Production-Linked Incentive (PLI) scheme. This scheme was designed to attract companies seeking to diversify their manufacturing operations away from China, and the results speak for themselves. India has captured nearly half of the reduction in mobile phone exports from China and Vietnam, indicating a successful execution of the China+1 strategy.
With companies like Apple choosing India as its second-largest iPhone manufacturing base after China, the impact of the PLI scheme is clearly visible. Apple’s key suppliers, including Foxconn, Pegatron, and Wistron, have established manufacturing facilities in India, leading to a significant increase in production and exports. In fact, Apple’s vendors reported a doubling of production and exports in the past two fiscal years, demonstrating the effectiveness of the PLI scheme.
Notably, iPhone exports alone contribute to 65% of India’s $15.6 billion mobile exports, highlighting the substantial growth in this sector. Samsung, another beneficiary of the PLI scheme, is also expected to increase its mobile phone exports from India in the coming years. With India emerging as a favorable destination for electronics manufacturing, the country is poised to attract more investments and create employment opportunities in the sector.
In conclusion, India’s rapid rise in mobile phone exports signifies a significant achievement in the government’s efforts to promote domestic manufacturing and attract foreign investments. The success of the PLI scheme, coupled with the country’s strategic positioning in the global supply chain, bodes well for India’s continued growth as a key player in the electronics industry.
