- India’s phone exports for FY19-20 stood at 3.6 crore units, or more than double the 1.7 crore units the previous year.
According to data released by the Ministry of Commerce on Wednesday, India’s phone exports for FY19-20 stood at 3.6 crore units, or more than double the 1.7 crore units the previous year.
“We’ve attracted attention in the cell phone segment from companies such as global giant Samsung and Chinese OEMs coupled with the right collection of opportunities for them,” said TechArc founder and chief analyst Faisal Kawoosa.
“The mass domestic market, which has long been underpenetrated, has provided these players with an opportunity to address both local demand and set-up base here,” he added.
In terms of production, with India exporting devices worth Rs 21,000 crore, the on-year growth in exports last fiscal year ended March 31 was 91 percent. Exports in FY16-17 have risen from 20 lakh units.
Correspondingly, last FY group imports plummeted from 2.6 crores in the previous fiscal year by 81 percent to 20 lakh. Phone imports in FY16-17 fell from 7.5 crore units.
The data is listed in the category ‘Telephones for cellular or other wireless networks’ which includes components such as chargers, mobile phones, smartphones, and phone assembly pieces. About 90 percent of this number reflects finished products, analysts said.
Local manufacturing in India has increased with local manufacturing sops encouraging Apple, Xiaomi, Oppo, Vivo, OnePlus, Realme and Samsung to either expand or extend local manufacturing in India as well as export from the world’s second-largest smartphone market.
The industry has benefited primarily from the government’s ‘Make in India’ initiative-the most successful being the Merchandise Export Incentive Scheme (MEIS)
Under MEIS, depending on exported goods and regions, the government offers duty benefits of up to 4 percent. Rewards under the scheme are payable as a percentage of the realized free-on-board value and MEIS duty credit script may be passed to the business for work capital needs or used to pay different duties such as basic customs duties.
According to the government, this incentive will be increased to between 4 percent and 6 percent, according to the latest production-linked incentive that has a budget outlay of Rs 41,000 crore, effective from August 1 this year.
India’s contribution to the global smartphone market rose from 9 percent in 2016 to 16 percent in 2019 as major smartphone manufacturers diversify to countries outside China.
China was losing luster as the world’s telephone factory as the supply chain and production ecosystem shifted steadily abroad due to rising costs, trade tensions with the US and a re-prioritization of other consumer markets, the Counterpoint research firm said in a report.
India has about 270 factories producing handsets and components according to government info.
