India's Mobile Exports Surge 40.5%, Narrows China-Vietnam Gap

New data shows India has significantly narrowed the gap with China and Vietnam in mobile phone exports, capturing almost half of the declining exports from these countries. According to figures from the International Trade Centre (ITC), Chinese mobile phone exports dropped 2.8% to $132.5 billion in FY24, amounting to a $3.8 billion decline from the previous fiscal. Vietnam saw an even sharper fall of 17.6%, with exports falling $5.6 billion to $26.27 billion.

In contrast, India's mobile phone exports surged 40.5% to reach $15.6 billion in FY24, climbing $4.5 billion. Industry sources disclosed to ET that India absorbed nearly 50% of the total $9.4 billion reduction in exports between China and Vietnam.

According to officials who told ET, the Indian government's smartphone Production-Linked Incentive (PLI) scheme has played a vital role in catalyzing this growth. Major companies like Apple, Foxconn, Pegatron and Wistron have established manufacturing bases in India under the PLI scheme.

Apple has been a major beneficiary, doubling its Indian production and exports over the past two years to cross $10 billion in FY24. Samsung is also expected to boost exports from its expanding India operations.

With geopolitical uncertainties looming over China, the surge in India's mobile phone shipment is quickly bridging the gap between China and Vietnam in this crucial export segment, helping India emerge as a key alternative manufacturing hub for global electronics.