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Union Electronics and IT Minister Ashwini Vaishnaw announced on Thursday (7 December) that mobile phone production worth $50 billion will take place in India in the current financial year.

He further stated that exports from this sector are projected to hit $15 billion.

Vaishnaw also emphasised that the nation's total exports are on the verge of reaching $1 trillion in the near future.

During a press conference, the minister said mobile phones have now become the fourth largest export category from India.

"In the next year or two, you will see that mobile phone and electronics exports have reached the top 2 or top 3 positions in the export list," he said.

At present, the top five consist of processed petroleum, diamonds, iron, steel, and pharmaceuticals.

Since October 2022, India has been logging over $1 billion in smartphone exports.

According to the Commerce Department data, in the first half of the 2023-24 fiscal year, smartphone exports reached $6.53 billion. This is in comparison to the $10.95 billion in exports for the entire 2022-23 fiscal year. It should be noted that there is a two-month delay in the data.

A large chunk of smartphone exports is tied to the performance of one company- Apple India - which accounts for 62 per cent of all smartphone exports.

During the April-October period of FY24, the tech giant exported iPhones valued at $5 billion through its three Indian vendors.

Overall, the country's electronic exports stood at $15.77 billion in FY24. In the previous year, this was $28 billion.

Vaishnaw said that the rapid increase in smartphone exports illustrates the swift diversification of India's export basket.

He asserted that the government's 'Make in India' initiative has undoubtedly become a success.

"The country's economy is at a major inflection point. India has reached a point, where we are getting ready to do $1 trillion worth of exports very soon," he said, Business Standard reported.

In the fiscal year 2023, India reported total exports amounting to $775.7 billion. This figure comprised of merchandise exports valued at $450.4 billion and services accounting for $325.4 billion.