India made 14% of all iPhones in FY24: Economic Survey

India manufactured 14 per cent of iPhones sold all over the world in the fiscal year 2023-’24, or FY24, according to the Economic Survey tabled in Lok Sabha on Monday.

“Apple assembled USD 14 billion worth of iPhones in India during FY'24, constituting 14 per cent of its global iPhone production,” the Economic Survey said.

The survey, presented by Finance Minister Nirmala Sitharaman a day before the Union Budget on July 23, noted the mobile phone industry has seen the maximum growth within the electronics sector, with US-bound exports increasing to $5.7 billion in FY24 from $2.2 billion in FY23.

Overall, the nation’s position in global electronics export moved up by four spots , the survey said, adding that Foxconn has now began manufacturing iPhones in Tamil Nadu and Karnataka.

“India’s share in world electronics exports has improved from 0.63 per cent in 2018 to 0.88 per cent in 2022. As such, India’s exports (ranking) rose from 28th in 2018 to 24th in 2022 in global electronics exports. The share of electronics goods in merchandise exports of India rose from 2.7 per cent in FY19 to 6.7 per cent in FY24,” the Economic Survey said.

“Domestic production of electronic items increased significantly to Rs 8.22 lakh crore, while exports rose to Rs 1.9 lakh crore in FY23,” the survey said, adding India is now “an attractive destination for investments in this sector, and substantial manufacturing capacities have been established in the country over the past five years”.

The Economic Survey stated that attracting foreign smartphone brands to manufacture in India could let the country capitalise on the China Plus One trade strategy, which several countries and multinational companies have adopted in a bid to find an alternative location for manufacturing outside China.

The survey pointed out that the Indian government’s Production Linked Incentive (PLI) scheme has acted as a boost, in this context.

“The government’s PLI scheme, including tax breaks and subsidies, plays a significant role in attracting companies. The rise in India’s domestic smartphone demand is also a key factor in the decisions of companies to invest there,” the Economic Survey said.