Mobile exports may hit $10 bn in FY23 with PLI support

“Last year, smartphone exports were at ₹45,000 crore, this year, we’ve already crossed that number and doing roughly $1 billion a month. At this rate, we should be able to reach $9 billion this year,” said Pankaj Mohindroo, chairman of the Indian Cellular and Electronics Association that represents handset makers in the country.

According to data from Counterpoint Research, from January to November this year, exports have risen by 23% from the previous year, and a double-digit growth rate is likely to continue for the remaining months as well, on the back of production-linked incentives being offered by the government.

“The key contributor to the rise in exports has been the PLI scheme which has benefitted manufacturers and brands and has pushed the overall manufacturing ecosystem,” said Prachir Singh, senior analyst with Counterpoint Research.

The rise in exports comes at a time when India-made smartphone shipments declined for the first time, by 8% on-year in the July-September, to reach over 52 million units, largely due to waning consumer demand amid economic headwinds and market uncertainties due to geopolitical changes, as per Counterpoint data.In India’s smartphone manufacturing ecosystem, 63% of shipments come from in-house manufacturers and 37% from third-party electronics manufacturing service providers such as Bharat FIH, which makes for Xiaomi and Dixon Technologies which also makes for Samsung. OPPO had the largest share of made in India smartphone shipments with 24% share, followed by Samsung and Vivo. Oppo makes phones for its own brand OPPO, Realme and OnePlus.

“We will continue to see PLI disbursements in subsequent quarters, which will add to the local manufacturing landscape. Overall, the manufacturing trend is witnessing an upward trajectory, with multiple partnerships happening in recent months, like the ones between Tata Group and Wistron and between Foxconn and Vedanta,” analysts at the firm said in a note on Tuesday.