Mobile Phone Exports Surpass Rs 2 Lakh Crore in FY25, Driven by iPhone Shipments and Growth in Electronics Manufacturing

India's mobile phone exports reached over Rs 2 lakh crore in the 2024-25 fiscal year, with iPhone shipments alone contributing approximately Rs 1.5 lakh crore, according to Union Minister Ashwini Vaishnaw. Smartphone exports have grown by 54% compared to the previous year, making them one of India's top exported goods.

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The electronics manufacturing sector in India has seen significant growth, with production increasing more than five times and exports rising over six times in the past decade. The minister highlighted that the ecosystem for electronics manufacturing, including component production, has expanded considerably. Over 400 production units, both large and small, are involved in manufacturing various components.

Electronics Manufacturing Scheme

Vaishnaw announced the launch of a passive component manufacturing scheme, which includes incentives worth Rs 22,919 crore. This initiative aims to create around 1 lakh direct jobs and enhance value addition in finished products. The scheme will support the production of components like resistors, capacitors, inductors, and more for use in consumer electronics, medical devices, automobiles, and other technological products.

The Electronic Component Manufacturing Scheme will offer benefits for six years starting April 1. However, this period includes an optional one-year gestation phase. The base year for calculating turnover-linked incentives is FY 2024-25, but applicants opting for a gestation period will use FY 2025-26 as their base year.

Investment and Incentives

Companies participating in the scheme must invest between Rs 10 crore and Rs 1000 crore to qualify for turnover-linked incentives ranging from 1% to 10%. Additionally, a capex incentive of up to 25% is available for printed circuit boards and SMD passive components. Sub-assemblies and bare components requiring a minimum investment of Rs 10 crore can also receive a 25% capex incentive but are not eligible for turnover-linked incentives.

The application window for this scheme opens on May 1 and will remain open for three months, with a possibility of extension. The initiative aims to boost India's electronics manufacturing capabilities by supporting various components essential for technological products.

Vaishnaw stated that India has achieved about 20% value addition in electronics manufacturing and aims to double this figure within five years. The scheme's focus on enhancing component production is expected to contribute significantly to this goal.