In the global smartphone export race, the narratives of Vietnam and India present a study in contrasts and evolving dynamics. Vietnam, with a strategic focus on becoming a key player in the global supply chain, has remarkably increased its share in global smartphone exports from a mere 1% to an impressive 12% before 2022. This surge positions Vietnam as a formidable competitor, second only to China, and marks a significant shift in the landscape of global smartphone manufacturing and exportation. India, on the other hand, despite its ambitious targets and the government’s efforts to boost smartphone exports, finds itself at a crossroads. Prime Minister Narendra Modi’s vision of the world using “made-in-India” phones, backed by policies such as the Production Linked Incentive scheme, aimed to catapult India into a leading position in the global smartphone market. The National Policy on Electronics 2019 set an ambitious target for India to export 600 million mobile phones worth $110 billion by 2025. However, with the deadline fast approaching, India’s smartphone exports remain below the $10 billion mark annually, a fraction of its lofty goal.

The challenges facing India are multifaceted. Minister Rajeev Chandrasekhar’s concerns about losing ground to China and Vietnam due to high tariffs on the import of mobile components highlight a critical area where policy adjustments are needed.Vietnam’s success story is partly attributed to its growing influence in the U.S. smartphone market, the world’s largest importer of mobiles.This growth underscores Vietnam’s strategic positioning and adaptability in capitalizing on shifting global supply chains, especially as companies seek alternatives to reduce dependency on China. India, while showing promising signs of growth in certain markets like the UAE and Germany, where its share is increasing as Vietnam’s declines, still faces a steep path to realizing its export ambitions. Furthermore, within India, regions like Tamil Nadu, Uttar Pradesh, and Karnataka are emerging as key hubs for smartphone exports, showcasing the country’s internal capabilities and potential for growth. As the global smartphone export landscape continues to evolve, the competition between Vietnam and India underscores the importance of strategic policy decisions, infrastructure development, and market positioning. For India to achieve its ambitious export targets and compete more effectively on the global stage, it will need to address its current challenges head-on, leveraging its domestic manufacturing capabilities while optimizing its policy environment to enhance competitiveness. Vietnam’s remarkable ascent serves as both an inspiration and a challenge, highlighting the dynamic nature of the global smartphone industry and the ongoing shifts in the balance of power within it.

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