India is rapidly emerging as a global smartphone export powerhouse, a transformation fueled by the government's Production-Linked Incentive (PLI) scheme. This initiative has incentivized major global players, particularly Apple and Samsung, to significantly expand their manufacturing operations within India, driving unprecedented export growth.
The PLI Scheme: A Catalyst for Growth
The PLI scheme, launched in 2020, provides financial incentives to companies for increasing domestic production and exports in key sectors, including electronics. For the smartphone industry, the PLI scheme has proven to be a game-changer. It has attracted substantial investments, expanded domestic manufacturing capacity, and deepened India's integration into global value chains.
One of the most significant outcomes of the PLI scheme is the remarkable surge in smartphone exports. In fiscal year 2024-25, India's smartphone exports surpassed ₹2 lakh crore for the first time, marking a 54% increase compared to the previous year. This growth trajectory has continued into FY26, with exports reaching ₹1 trillion in just the first five months, a 55% increase from the same period last year.
Apple and Samsung Lead the Charge
Apple and Samsung have been at the forefront of this export boom, leveraging the PLI scheme to establish India as a major manufacturing hub. Apple's iPhone manufacturers, including Tata Electronics and Foxconn, have contributed significantly, accounting for nearly three-fourths of total smartphone exports in the first five months of FY26.
Apple's strategic decision to shift its suppliers to India has been pivotal in establishing the country as a manufacturing hub outside of China. By December 2025, Apple had exported over $50 billion worth of iPhones from India under the PLI scheme. Samsung, another key player, exported nearly $17 billion worth of devices from India during its five-year PLI period from FY21 to FY25.
India's Rising Prominence in the Global Market
As a result of this export surge, India has emerged as a leading smartphone supplier to the United States, overtaking China in Q2 2025. Made-in-India devices now account for 44% of US smartphone imports, a sharp increase from 13% just a year ago. This shift reflects a broader realignment in global supply chains, as manufacturers seek cost-effective and stable alternatives outside of China.
The growth in smartphone exports has also propelled the sector to become one of India's top export items. In 2024-25, smartphone exports surged by 55% to $24.14 billion, surpassing traditional sectors like petroleum products and diamonds. The top destinations for India's smartphone exports include the United States, the Netherlands, Italy, Japan, and the Czech Republic.
Challenges and Future Outlook
Despite the remarkable progress, India's smartphone manufacturing sector faces certain challenges. One key concern is the dependence on imported components, which increases production costs and reduces competitiveness. The government is addressing this issue through initiatives like the Electronics Components Manufacturing Scheme (ECMS), which incentivizes the domestic manufacturing of key electronic components.
Another challenge is competition from countries like Vietnam, which offer more favorable tax policies and lower logistics costs. To sustain its growth momentum, India needs to focus on simplifying its tariff structure, developing a robust domestic component ecosystem, and fostering innovation through increased investment in research and development.
Looking ahead, the future of smartphone manufacturing in India appears promising. The government aims to achieve electronics production of $300 billion by 2025-26, with a strong emphasis on boosting smartphone exports. With continued policy support, investments in infrastructure, and a focus on value addition, India is well-positioned to solidify its status as a global smartphone export powerhouse.
