India Becomes Third Largest Smartphone Exporter
India has made strides in the global smartphone market and has risen from 23rd to 3rd place in smartphone exports since 2019. In November 2024, India’s smartphone exports exceeded 20,000 crore rupees in a single month. This achievement has been celebrated by officials and marks a very important moment in India’s manufacturing landscape.
Growth in Smartphone Exports
India’s smartphone exports have surged dramatically over the past few years. The increase is attributed to various factors, including government initiatives and a growing domestic manufacturing base. This growth reflects the country’s capabilities in technology and production.
Government Initiatives
The Government of India launched the Production-Linked Incentive (PLI) scheme to boost local manufacturing. This scheme aims to enhance production and export capabilities. It encourages companies to manufacture smartphones in India, thereby reducing reliance on imports.
Achievements Under PLI Scheme
Under the PLI scheme, India has set ambitious targets for smartphone exports. The goal for the financial year 2024-25 is to export 70-75% of the total production value. Achieving this target indicates the effectiveness of the PLI scheme in encouraging growth.
Impact on the Economy
The rise in smartphone exports contributes to the Indian economy. It creates job opportunities in manufacturing and allied sectors. Increased exports also improve the country’s trade balance and foreign exchange reserves.
Looking ahead, India aims to strengthen its position in the global smartphone market. Continued investment in technology and infrastructure will be crucial. The focus will remain on innovation and maintaining competitive pricing to attract more international buyers.
GKToday Notes:
- Production-Linked Incentive (PLI): Production Linked Incentive (PLI) scheme, launched in 2020, offers financial incentives to companies for incremental sales of products manufactured domestically. Aimed at boosting manufacturing and reducing import dependence, it covers 14 key sectors, including electronics, pharmaceuticals, and textiles.
- Trade Balance: A positive trade balance indicates economic health. Increased smartphone exports enhance India’s foreign exchange reserves. This contributes to overall economic stability and growth prospects.
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Month: Current Affairs - December, 2024
Category: Economy & Banking Current Affairs
Rajeev Vadjikar
December 19, 2024 at 2:19 pmThe improvement to 3rd position in smartphone manufacturing due to PLI scheme is very impressive. Countries such as Malaysia, Vietnam, Thailand etc are also competing to benefit from USA China trade friction.
Vishal
December 19, 2024 at 7:03 pmPLI scheme is an production linked incentive to the companies to benefit them for increasing production of electronic products such as mobile phone, laptops, computer. This scheme has been extended to other sections also as textile, agriculture sector