Mobile Phone Exports Exceed Rs 2 Lakh Crore in FY25, Driven by Strong iPhone Shipments

India's mobile phone exports reached over Rs 2 lakh crore in the 2024-25 fiscal year, with iPhone shipments alone accounting for approximately Rs 1.5 lakh crore, according to Union Minister Ashwini Vaishnaw. This marks a significant 54% increase compared to the previous fiscal year, highlighting the growing prominence of smartphones among India's top exported goods.

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Electronics manufacturing in India has seen substantial growth over the past decade, with production increasing more than fivefold and exports rising over six times. The minister announced a new passive component manufacturing scheme, offering incentives worth Rs 22,919 crore. This initiative aims to create around 1 lakh direct jobs and boost value addition in finished products.

Electronics Manufacturing Growth

The electronics manufacturing ecosystem in India has expanded significantly, including component manufacturing. More than 400 production units, both large and small, are now operational, producing a wide range of components. Vaishnaw noted that the Electronic Component Manufacturing Scheme will provide benefits for six years starting April 1, including an optional one-year gestation period.

The scheme will support the production of various electronic components such as resistors, capacitors, and inductors. These components are essential for consumer electronics, medical devices, power electronics, automobiles, and other technological products. 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%.

Incentives and Investment Requirements

The scheme also offers a capex incentive of up to 25% for printed circuit boards and SMD passive components. However, supply chains of sub-assemblies and bare components requiring a minimum investment of Rs 10 crore will only be eligible for this capex incentive and not for turnover-linked incentives.

Applications for sub-assemblies and bare components under the scheme will be open for three months starting May 1, with potential extensions. For supply chains of sub-assemblies and capital equipment for electronics manufacturing, the application window will initially remain open for two years from May 1.

Financial Year 2024-25 is designated as the base year for calculating turnover-linked incentives under this scheme. Applicants can opt for a one-year gestation period, making FY 2025-26 their base year instead. The initiative aims to double the current value addition of about 20% over the next five years.

Vaishnaw highlighted that supported electronic components will be integral to various sectors such as consumer electronics and automobiles. The scheme covers components like ferrites, speciality ceramics, inductive coils, electro-mechanical parts, lithium-ion cell motherboards, IT hardware enclosures, and more.

The minister emphasised that this initiative is crucial for enhancing India's electronics manufacturing capabilities. By fostering investment and innovation in component production, India aims to strengthen its position in the global electronics market.