Smartphone Exports Increase by 83% Despite Chip Crunch

The country's overall smartphone exports are expected to exceed Rs 42,000 crore ($5. 6 billion) in the current fiscal year, representing an increase of about 83 percent.
Smartphone Exports Increase by 83% Despite Chip Crunch
Smartphone Exports Increase by 83%

NEW DELHI: The country's overall smartphone exports are expected to exceed Rs 42,000 crore ($5. 6 billion) in the current fiscal year, representing an increase of about 83 percent over Rs 23,000 crore in 2020-21. When one considers that just 4 years ago, smartphone exports were just approximately Rs 1,300 crore (in 2017-18), they jumped dramatically to Rs 11,200 crore in 2018-19, and then to Rs 27,200 crore in 2019-20.

Electronics Market was Suffering from Severe Component Shortages

Electronics Market Component Shortage

Due to manufacturing and supply problems caused by the Covid epidemic in the year, the figures in 2020-21 were modest at Rs 23,000 crore. The increase in exports is considered exceptional since it occurred at a time when the larger electronics industry was experiencing significant component shortages owing to the semiconductor crunch, in addition to interruptions caused by Covid-related lockdowns and limitations. Because of India's strained ties with China, a crucial supplier of vital components, certain parts have been held up or are arriving at a slower rate than usual. However, the industry appears to have conquered this obstacle as well.

"The impressive performance comes against the backdrop of three devastating Covid waves, workforce loss, lockdowns, and the worst-ever supply chain crisis, including acute scarcity of chips and semiconductors," said Pankaj Mohindroo, chairman of industry body Indian Cellular and Electronics Association (ICEA), which worked on the data.

Companies Now Target Advanced Market in Europe and Developed Asia

Advanced Market in Europe and Developed Asia

According to the ICEA, India-made smartphones are now being exported to some of the world's most sophisticated markets, as opposed to previous export destinations in South Asia, Africa, and sections of the Middle East/Eastern Europe. "Companies are increasingly focusing on some of Europe's and developed Asia's most aggressive and advanced markets." These markets require the greatest standards of quality, and Indian manufacturing facilities are equal to the challenge," Mohindroo added.

Apple and Samsung account for the lion's share of exports. While Apple is said to have exports of up to Rs 12,000 crore (from models such as the iPhone SE, iPhone 11, and iPhone 12), Samsung is thought to have exports of approximately Rs 20,000 crore.

The increase in mobile phone exports is expected to outstrip the improvement in total electronics exports from India, which is expected to jump from $10.6 billion in FY21 to roughly $15 billion in the current fiscal year, according to the ICEA.

Smartphone Exports Increase by 83% Despite Chip Crunch
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