India's mobile phone exports increased 250% in Q1 2021
Mobile phone exports from India saw a 250% year-on-year growth in April-June 2021, according to the India Cellular and Electronics Association (ICEA).
The industry body said the country has seen a sharp decline in mobile phone imports over the past year, dropping to Rs. 600 crore in the first quarter of 2021-22, from Rs. 3100 crore in 2020-21. “This is an all time low since 2014-15,” said Pankaj Mohindroo, Chairman of the ICEA. The industry body counts companies like Apple, Foxconn and many others amongst its members.
“Despite the second wave of COVID-19 pandemic, prudent policy of the Government of India (GoI) to continue manufacturing and backed by the PLI scheme, industry has made significant progress in manufacturing and exports,” Mohindroo said. He added that mobile phone exports during the first quarter of 2021-22 stood at Rs. 4600 crore, up over three times from the Rs. 1300 crore achieved during the same quarter in 2020-21. “Electronic goods export has also shown a tremendous rise of 100% (YOY) in Q1 2021-22 crossing the mark of INR 20,000 Crore,” he noted.
Increase in mobile exports is a key goal for the government’s PLI scheme, which aims to build scale in Indian electronics manufacturing. A scheme to attract semiconductor and display manufacturers is also expected soon, with companies like the Tata Group planning to enter the space.
On the other hand, imports grew in the laptops and tablet category, showing a significant increase in the first quarter. The sector saw Rs. 6000 crore worth of imports in 2020-21, which grew to Rs. 10,000 crore in 2021-22. The Government had also announced a PLI scheme for IT Hardware earlier this year, the recipients of which were approved in July this year. The scheme offers 2-4% cash incentives on net incremental sales over the base year of FY20.