India’s electronics sector has achieved a new milestone, with smartphone exports crossing ₹2 lakh crore in the financial year 2023-24 — a staggering 54% year-on-year jump, according to Union Minister for Electronics and IT, Ashwini Vaishnaw. Spearheading this growth is Apple’s iPhone, which alone accounts for ₹1.5 lakh crore of the total exports.
This landmark moment signals India’s growing prowess not just as a smartphone assembly hub, but as a rising player in the global electronics value chain. In this article, we’ll take a closer look at India’s remarkable achievement of crossing ₹2 lakh crore in smartphone exports in FY24 — a record-breaking milestone driven largely by Apple’s iPhone exports.
Credits: Inc 42
iPhone: The Star Export Performer
The lion’s share of India’s smartphone exports in FY24 was driven by Apple’s iPhone, reflecting the tech giant’s deepening manufacturing footprint in India. With ₹1.5 lakh crore worth of iPhones exported from India, it’s clear that Apple’s strategy to diversify its supply chain beyond China is bearing fruit.
Apple’s major manufacturing partners — Foxconn, Wistron (now Tata Electronics), and Pegatron — have been rapidly expanding production in India. The success of this shift is evident in India’s soaring export numbers and the country’s emergence as a reliable global manufacturing alternative.
Components Scheme: A Push for Deeper Value Addition
While smartphone exports are booming, the Indian government is eyeing the next big leap — building a strong component ecosystem. To that end, the Centre is rolling out a new ₹22,919 crore Electronics Components Scheme, aimed at encouraging domestic manufacturing of key components used in a wide range of electronic products.
Minister Vaishnaw announced that the scheme would be notified for public consultation immediately, with inputs collected over the next two weeks. Applications are expected to open within three weeks through a dedicated portal.
What’s Covered Under the Scheme?
The scheme isn’t just about chips. It covers a wide array of essential components such as:
- Resistors, capacitors, inductors
- Speakers, switches, connectors
- Sensors, transducers, antennas
- Copper foils, laminates
- Cathode and anode materials used in batteries
- Additionally, it will support the manufacturing of precision capital equipment required to produce these components, creating a multiplier effect across multiple industries.
400+ Units and Counting: India’s Growing Electronics Base
Over the last few years, the diversity and number of component manufacturers in India have grown significantly. The country is now home to more than 400 electronics production units, a dramatic shift from its earlier dependence on imports.
Minister Vaishnaw emphasized that electronics is now among India’s top exported goods, thanks to consistent policy support and ecosystem development.
The 40% Value Addition Target
Currently, India adds about 20% value to its locally manufactured electronics — a significant rise, but still short of China’s 38%. The government now aims to cross the 40% mark within five years.
“The budgetary allocation is sufficient for now,” Vaishnaw said, expressing confidence that with the new scheme, India will not only catch up with but eventually surpass China in value addition.
Strategic Implications
This move isn’t just about exports — it’s about tech sovereignty. A robust domestic supply chain reduces India’s reliance on imports for critical components, making its electronics sector more resilient in the face of global disruptions.
Moreover, such initiatives pave the way for India to:
- Attract global tech investments
- Strengthen its position in global electronics supply chains
- Create high-value jobs in manufacturing and R&D
Credits: The Economic Times
A Pivotal Moment for ‘Make in India’
From being largely an assembly hub just a few years ago, India is now stepping confidently into the role of a global electronics powerhouse. With smartphone exports hitting record highs and the government backing core component manufacturing, the momentum is unmistakable.
The coming years will likely determine whether India can not only maintain this growth but lead the next wave of global electronics manufacturing.
