The growth in local production, especially in smartphones, was supported by the government’s production-linked incentive (PLI) scheme, encouraging manufacturers to source components locally, according to an ET report.
Plastic parts imports, including back covers, GSM antenna and camera lenses for smartphones, decreased by 33% in volume and 26.5% in value during the first 10 months of FY24. Similarly, imports of mechanical parts, like vibrator motors and screws, also saw a decline in volume and value.
Big boost
The government’s decision to reduce import duty on components from 15% to 10% in the recent budget aimed to boost local manufacturing competitiveness. Charger adapters imports witnessed a significant 72% decrease in volume but a slight 1.3% increase in value from April to January 2024 compared to FY23. Market analysts noted that chargers account for about 2.5% of the total production cost of mobile phones.
Also Read | Apple Awas Yojana? Apple ecosystem to now build residential facilities for workers after creating 1.5 lakh direct jobs
While high-value items such as camera modules, display assemblies, and battery packs were imported in larger quantities last year, there is a growing need to enhance local value addition for improved export competitiveness. Camera module imports increased by 2.3% in volume but decreased by 5.3% in value, while battery pack imports rose by 12% in volume but fell by 13% in value.
The revised HSN code for display assemblies in 2023 led to a significant 200% surge in imports. Semiconductor imports also saw an increase, driven by the demand for premium electronic goods and higher wafer costs.
Also Read | Is Chinese garlic being smuggled into India? Why customs has sounded high alert
In the first nine months of the fiscal year, India’s electronics exports soared by 22.24% to surpass the $20-billion mark, primarily due to robust smartphone exports by leading brands like Apple and Samsung.
Notably, iPhones accounted for $7 billion in exports in December 2023, representing 35% of total electronics exports.