According to the Economic Survey 2023-24 presented by Finance Minister Nirmala Sitharaman in Parliament, Apple, a prominent US smartphone manufacturer, assembled 14% of its global iPhones in India during the fiscal year 2023-24. The survey also highlighted that India's ranking in global electronics exports improved by four positions. 

In particular, the mobile phone segment within the electronics sector saw significant growth, with exports to the United States increasing from USD 2.2 billion in the financial year 2022-23 to USD 5.7 billion in FY24. This growth underscores the expanding role of India in global electronics manufacturing and exports, driven in part by increased assembly activities by major companies like Apple. 

According to the Economic Survey, Apple assembled iPhones worth USD 14 billion in India during the fiscal year 2023-24. This amount constituted 14% of Apple's global iPhone production for that period, as reported based on third-party data. 

The Economic Survey highlighted that Foxconn has commenced production of Apple mobile phones in both Karnataka and Tamil Nadu. It also noted India's progress in global electronics exports, stating that India's share in world electronics exports increased from 0.63% in 2018 to 0.88% in 2022. Consequently, India's ranking in global electronics exports improved from 28th in 2018 to 24th in 2022. 

Furthermore, the survey indicated a notable rise in the share of electronics goods in India's merchandise exports, increasing from 2.7% in FY19 to 6.7% in FY24. This growth underscores the expanding footprint of India's electronics manufacturing sector, which accounted for approximately 3.7% of the global market share in FY22, marking significant progress since 2014. 

The Economic Survey highlighted that the electronics industry contributed 4% to India's GDP in FY22. It noted a significant increase in domestic production of electronic goods to Rs 8.22 lakh crore, with exports reaching Rs 1.9 lakh crore in FY23. India has emerged as an appealing investment destination in this sector, having established substantial manufacturing capabilities over the past five years. 

The survey emphasised smartphone manufacturing as pivotal, particularly in leveraging global companies' "China plus one" strategy amid geopolitical considerations. In the electronics sector, there is a specific focus on manufacturing and assembling smartphones. The government's Production Linked Incentive (PLI) scheme, which includes tax incentives and subsidies, plays a crucial role in attracting investments. Additionally, the growing demand for smartphones within India is a significant factor influencing companies' decisions to invest in the country. 

According to the Economic Survey, India has seen substantial growth in its electronic exports, attributed largely to the implementation of the Production Linked Incentive (PLI) scheme. This scheme has played a crucial role in driving this growth. For example, India's electronic exports to the US have shifted from a trade deficit of USD 0.6 billion in FY17 to a trade surplus of USD 8.7 billion in FY24, indicating a significant increase in value addition. 

The survey referenced a study by the Centre for Development Studies, which highlights notable advancements in domestic value addition (DVA), employment, wages, and salaries within the mobile manufacturing segment since FY17. 

The Economic Survey highlighted that the share of Domestic Value Addition (DVA) in mobile phone output increased significantly from an average of 8.7% in FY17 to FY19 (Phase 1) to 22% in FY20 to FY22 (Phase 2), indicating a substantial rise in local involvement in manufacturing processes. 

Regarding participation in global value chains (GVCs), although DVA, as a ratio of exports may be modest, engaging in these chains, enhances overall value added due to economies of scale in manufacturing for the expansive global market. 

The survey also noted remarkable growth in the direct workforce engaged in mobile phone production, which more than tripled between FY17 and FY22. This growth has particularly benefited female blue-collar workers. Additionally, wages and salaries in this sector increased by 317% between Phase 1 and Phase 2 of the survey period. 

Image source:  The Economic Times