India's recent success in the smartphone manufacturing industry has been impressive. Trade data from the industry body India Cellular and Electronics Association and government officials have revealed that India's smartphone exports have more than doubled, reaching over $11 billion in the fiscal year that ended in March. This figure has surpassed New Delhi's target of $9-10 billion, demonstrating the country's growing ambition to become a global hardware manufacturing hub.
What's interesting is that Chinese smartphone makers, who commanded over two-thirds of all local shipment in India just two years ago, have contributed little to the exports. The smartphone exports of $11.2 billion have been dominated by Apple, accounting for almost half of the total exports with an estimated $5 billion to $5.5 billion, followed by Samsung Electronics with about $4 billion.
The Indian government's concerted efforts and substantial financial incentives have encouraged smartphone manufacturers to expand their operations in India. New Delhi has been actively investing in local infrastructure to bolster its position as a manufacturing hub, and it seems that these efforts have paid off.
Last year, Foxconn, the world's largest contract electronics manufacturer, started producing the iPhone 14 in India. This move marked the first time the country assembled Apple's latest model and is part of Apple's aggressive strategy to diversify its supply chain network beyond China, where COVID restrictions and other factors highlighted the risks of relying heavily on a single nation.
According to analysts at JP Morgan, Apple is set to further expand its manufacturing capabilities in India, with plans to produce 25% of all iPhones by 2025. This move shows the tech giant's growing ambitions in India, the world's second largest smartphone market, and highlights the potential of the Indian market for global technology companies.
The surge in smartphone exports is a major win for PM Modijis Make in India program. Union Minister Ashwini Vaishnaw has highlighted that India is well on its way to becoming a leader in the mobile device market of the world and playing a major role in India's electronic exports. With Apple set to open its first two retail stores in the country next week, the future looks bright for India's smartphone manufacturing industry.
