India's smartphone exports have reached an impressive $10.96 billion in 2022-23 and are projected to increase to $24.1 billion in 2024-25, growing at an annual rate of 48.4%. This remarkable growth highlights India's expanding role in the global electronics value chain. It also signifies increasing confidence among international manufacturers to rely on India for production, paving the way for greater integration into the global market.
Currently, India primarily assembles smartphones, importing most components. For instance, India captures only $30 of value for every $1,000 worth of iPhones exported, whereas the US captures $450 and Taiwan $150. Focusing on value addition will enable India to retain more earnings from exports, create high-quality jobs, and achieve greater technological independence.
To boost domestic value addition, India must advance in precision tooling, high-end materials, and critical component manufacturing. Initiatives such as the Electronics Components Manufacturing Scheme can help build these capabilities. Additionally, investments in skilling and sustainability are essential to ensure long-term competitiveness in the global market.
With global tensions and shifting supply chains, manufacturers are increasingly seeking alternatives to China. India, possessing a large market and a skilled workforce, is emerging as a preferred alternative. The Production-Linked Incentive (PLI) scheme further solidifies India's position as a strong manufacturing base, attracting significant investments.
India's Semicon Mission, supported by a $10 billion fund, aims to create a robust semiconductor ecosystem encompassing chip fabrication and packaging. Strengthening semiconductor manufacturing is pivotal as it underpins all electronic devices, thus supporting India's broader vision for advanced electronics production.
Prominent companies like Apple and Samsung are significantly investing in India's electronics sector. Apple assembles about 10-12% of iPhones in India, while Samsung's Noida facility has become a global hub for mobile phone exports. These developments reflect India's progress in attracting major manufacturers and enhancing its integration into global value chains.
As India transitions from low-value assembly to sophisticated manufacturing, a highly skilled workforce will be essential. This transition necessitates investments in technical education, skilling programs, and partnerships with global technology leaders, ensuring that new jobs are secure, well-paid, and future-ready.
To ensure that rapid manufacturing growth does not compromise environmental health, India must incorporate sustainability into its manufacturing goals. This includes efficient resource use, waste reduction, and investments in clean energy. Programs should address local environmental challenges, promoting growth while safeguarding the health of people and ecosystems.
Q1. What is the current growth rate of India’s smartphone exports?
Answer: India’s smartphone exports are projected to grow at an annual rate of 48.4%, reaching $24.1 billion in 2024-25.
Q2. Why is value addition important in electronics manufacturing?
Answer: Value addition allows India to earn more from exports, create better jobs, and enhance technological independence, crucial for economic growth.
Q3. How does the ‘China plus one’ strategy benefit India?
Answer: The strategy encourages manufacturers to seek alternatives to China, making India a preferred location due to its large market and skilled workforce.
Q4. What is the Semicon Mission in India?
Answer: The Semicon Mission aims to develop a comprehensive semiconductor ecosystem with a $10 billion fund, crucial for advanced electronics production.
Q5. How can India ensure sustainability in manufacturing?
Answer: India can achieve sustainability by adopting efficient resource use, reducing waste, and prioritizing clean energy in manufacturing practices.
Question 1: What was the value of India’s smartphone exports in 2022-23?
A) $10.96 billion
B) $24.1 billion
C) $30 billion
D) $15 billion
Correct Answer: A
Question 2: What is the primary goal of India’s Semicon Mission?
A) Reducing imports
B) Developing a semiconductor ecosystem
C) Increasing smartphone exports
D) Attracting foreign investments
Correct Answer: B
Question 3: Which scheme is designed to boost manufacturing in India?
A) Skill India
B) Production-Linked Incentive (PLI)
C) Make in India
D) Digital India
Correct Answer: B
Question 4: Which company assembles a significant percentage of iPhones in India?
A) Samsung
B) Xiaomi
C) Apple
D) Nokia
Correct Answer: C
Question 5: What is one major environmental goal for India's manufacturing sector?
A) Increase waste production
B) Sustainable resource use
C) Expand foreign imports
D) Reduce workforce size
Correct Answer: B
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