INTRO: Since the inception of the Coronavirus pandemic, we have seen a huge negative impact on smartphone shipments in India. However, according to recent reports by the Ministry of Commerce (MoC) in India, smartphone exports have in the country have increased by many folds.
The Ministry of Commerce recently published the amount which the country gained from smartphone exports of the previous month. As per MoC’s reports, smartphone exports in the month of August has added almost Rs 1781.1 crore to the country’s economic value, which is much higher than March’s export earning of Rs 976.3 crore.
Now, one of the reasons for this massive increase in the export value of smartphones is the recent Production Linked Incentives (PLI) scheme of the government. This very scheme is encouraging major players of the industry like Apple and Samsung to produce more smartphones in the country.
Moreover, the report suggests that as many of the local manufacturers are slowly starting to operate following Coronavirus-led lockdowns, the trend of high exports is likely to continue in the coming days.
According to market analysts, after the COVID-19 lockdowns, local manufacturing units in the country have started operating at 80-85% capacity. And this is the primary reason for the increase in the country’s exports.
“The worst is behind the smartphone manufacturing industry after facing a month-long shutdown, spread of Covid, customs scrutiny and labour shortage,”, Prachir Singh, a research analyst at Counterpoint Research said.
Moreover, as political tensions between the US and China continue to rise, many major companies are shifting their production units from China to India. Moreover, other smartphone companies, like HMD, are also planning to make the country a manufacturing hub for their products.