India’s Smartphone Exports Soar to Record ₹1.5 Trillion, Driven by PLI Scheme

India's smartphone exports have reached an all-time high of ₹1.55 trillion during the April-January period, as per a report from The Financial Express. This milestone marks a substantial rise from the ₹1.31 trillion recorded in FY24. The Production-Linked Incentive (PLI) scheme, introduced by the government, has played a key role in this rapid expansion.

January 2025 saw the highest monthly smartphone exports ever, totaling ₹250 billion. This represents a staggering 140% year-on-year increase compared to January 2024. Over the 10-month period leading up to January 2025, exports surged by 56% compared to the ₹991.2 billion recorded in the same timeframe in FY24.

Apple’s Dominance in India’s Smartphone Export Market

Apple's iPhone vendors have played a major role in this export boom, contributing nearly 70% of total shipments. Among Apple’s key manufacturing partners, Foxconn’s Tamil Nadu facility emerged as the largest contributor, accounting for nearly half of these exports. Foxconn’s smartphone exports witnessed a 43% year-on-year rise.

Tata Electronics has also expanded its manufacturing capabilities after acquiring Wistron’s operations. Its Karnataka unit contributed approximately 22% of the total exports. Pegatron, another Apple supplier based in Tamil Nadu, contributed 12%, with Tata Electronics recently acquiring a stake in the company.

Samsung, another major player in India's smartphone manufacturing industry, contributed around 20% of total exports. The remaining exports came from domestic smartphone manufacturers and merchant exports.

Smartphone Exports Expected to Cross $20 Billion

Ashwini Vaishnaw, India’s Minister for Electronics and Information Technology (MeitY), has projected that the country’s smartphone exports will reach $20 billion (₹1.68 trillion) in FY25.

A decade ago, smartphones ranked as India’s 67th-largest export category. However, today, they have climbed to the second position. Since the introduction of the PLI scheme in April 2020, and its full implementation in April 2021, smartphone exports have grown exponentially year after year.

• In FY21, smartphone exports stood at ₹233.9 billion.

• In FY22, they nearly doubled to ₹473.4 billion.

• In FY23, exports doubled again, reaching ₹916.5 billion.

• By FY24, exports surged further to ₹1.31 trillion.

This steady upward trajectory showcases India's increasing influence in the global smartphone supply chain.

Understanding the PLI Scheme

The Production-Linked Incentive (PLI) Scheme is a government initiative designed to boost domestic manufacturing through financial incentives. Its goal is to make India a key global player in manufacturing, innovation, and exports.

Under the PLI Scheme for large-scale electronics manufacturing, financial incentives are provided to encourage local production and attract substantial investments in the sector. The initiative specifically targets mobile phones and certain electronic components to strengthen India's position in the international supply chain.

Impact of the Telecom PLI Scheme

The impact of the Telecom PLI Scheme has been significant. According to a government notification issued in July 2024:

• The scheme has attracted ₹3,400 crore in investments within three years.

• The production of telecom equipment has surpassed ₹50,000 crore.

• Exports of telecom equipment have reached ₹10,500 crore.

• Over 17,800 direct jobs have been created, along with many indirect employment opportunities.

Conclusion

The combination of government incentives, strategic investments, and the involvement of global tech giants like Apple and Samsung has propelled India’s smartphone exports to record levels. With continued growth and policy support, India is well-positioned to become a global leader in smartphone manufacturing and exports.