India’s economic landscape is undergoing a notable transformation as global supply chains increasingly shift towards the country. In a significant development, India is closing the gap with China and Vietnam in mobile phone exports. While mobile exports from China and Vietnam saw declines of 2.78% and 17.6%, respectively, India experienced a remarkable surge of 40.5%, capturing nearly half of the reduced exports from these countries. This shift is driven by the government’s Production-Linked Incentive (PLI) schemes, which are beginning to yield tangible results.
Beyond mobile phones, India is also making strides in other export sectors. The Economic Survey 2023-24 highlights several measures that have significantly boosted product-specific exports. For instance, India’s toy industry, which previously struggled with a trade deficit, saw a significant turnaround in 2023. According to the Directorate General of Commerce Intelligence and Statistics (DGCI&S), toy exports have grown at a Compound Annual Growth Rate (CAGR) of 15.9% from FY13 to FY24, turning India from a net importer into a surplus nation in this sector. India’s reliance on Chinese imports has dropped drastically, from 76% of its total toy imports a decade ago to 64% in FY24.
The government’s strategic actions, including a National Action Plan for Toys and increased customs duties, have bolstered this success. India has also integrated into the global toy value chain, securing zero-duty market access for toys in key markets like the UAE and Australia.
Similarly, India’s footwear and leather industry, the world’s second-largest producer of footwear, has seen its exports rise from $1.9 billion in FY21 to $2.5 billion in FY24. Measures such as Quality Control Orders and the continuation of the Indian Footwear and Leather Development Programme are supporting this growth. With the Indian footwear market projected to reach $90 billion by 2030, the sector is poised for further expansion.
The smartphone sector has also benefited significantly from the PLI scheme launched in 2020. Domestic production now exceeds local demand, and smartphone exports have seen a 42.2% increase in FY24. India’s ascent to being the world’s sixth-largest smartphone exporter from the 23rd position in 2014 underscores the sector’s rapid growth.
In defense, India has shifted from being a major arms importer to ranking among the top 25 arms exporters globally. Defense production grew from 884.6 million USD in FY17 to 1.3 billion USD in FY23, supported by policy reforms and initiatives like Aatmanirbhar Bharat. The number of export authorizations has also increased, highlighting India’s expanding role in global defense markets.
Overall, India’s diverse export sectors are thriving due to strategic policy measures, increased government support, and a shift towards more competitive and self-reliant industries.
