• India exported smartphones valued at Rs1,781.1 crore in August this year, compared to Rs976.3 crore in March.
• Both Apple and Samsung are stepping up their facilities in India, even as manufacturers plan to capitalise on the production-linked-incentive scheme.

Bengaluru: Smartphone exports from India are getting back to pre-Covid levels and are expected to rise as legacy smartphone makers plan to ramp up production.

As per the latest figures released by India’s Ministry of Commerce, India exported smartphones valued at Rs1,781.1 crore in August this year, compared to Rs976.3 crore in March.

The numbers are expected to further rise significantly over the next five years as manufacturers plan to capitalise on the new government schemes to promote production facilities in India.

“With both Apple and Samsung planning to produce their newer versions of smartphones in India, exports are all set to rise. The production-linked-incentive scheme the government announced recently will play a major role in making India into a major hub for manufacturing electronic devices,” says Shobhit Srivastava, an analyst with Counterpoint Research, told TechChannel News.

The PLI scheme offers a production linked incentive – of 4 per cent to 6 per cent on incremental sales – in an effort to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including assembly, testing, marking, and packaging (ATMP) units.

As per reports, the government committee in charge of approving the applications has given a go-ahead to proposals to export mobile phones valued at around $100 billion (Rs7.3 lakh crore). Among the applicants are Apple contractors like Foxconn, Pegatron and Wistron and others like Samsung, Karbonn, Lava and Dixon.

More big players may follow

Both Apple and Samsung are stepping up their facilities in India as they plan to ease out of their concentration in China.

Foxconn, which manufactures iPhones, has recently announced plans to invest $1 billion in India. As per reports, Samsung may produce devices worth over $40 billion (Rs 3 lakh crore) in the country.

Apple recently announced that the iPhone SE models for the Indian market will be assembled within the country. The new iPhone SE is being assembled by Wistron at its facility in Bengaluru.

There are also reports that Wistron would be assembling the iPhone 12 models, making it the first high-end Apple device to be made in India.

“With more legacy players coming on board, we are expecting the overall components ecosystem to expand. This will result in other players joining in as well,” says Srivastava.

“India brings in a lot of advantages including cost-effective labour and proficiency in English,” he adds.

Even as exports have been rising, India has witnessed a drop in imports. India imported Rs1,050.1 crore worth of smartphones in August compared to Rs2,225.2 crore in August 2019.