In a landmark achievement for India’s electronics manufacturing sector, Apple Inc. exported iPhones worth Rs. 1.5 lakh crore (US$ 17.47 billion) in FY25, marking a 76% year-on-year (YoY) growth. This exceeds the company's Production-Linked Incentive (PLI) target of Rs. 74,900 crore (US$ 8.72 billion) for mobile devices by almost double, showcasing Apple's aggressive scaling of manufacturing operations in India.

This performance builds significantly on the previous fiscal year (FY24), when Apple exported iPhones worth Rs. 85,000 crore (US$ 9.90 billion). The monthly average of iPhone shipments in FY25 stood at Rs. 12,500 crore (US$ 1.46 billion), up from Rs. 7,083 crore (US$ 824 million) in FY24.

New Export Records Set in Q4 FY25

Q4 FY25 alone contributed Rs. 55,000 crore (US$ 6.4 billion) to Apple’s annual export tally. Notably, in March FY25, the company exported Rs. 20,000 crore (US$ 2.33 billion) worth of iPhones — a strategic move aimed at building inventory for the United States market ahead of new product launches and demand cycles.

This quarterly surge solidifies India’s position as a key manufacturing hub in Apple’s global supply chain and significantly boosts the government’s 'Make in India' vision.

Apple Drives India’s Smartphone Export Boom

India’s total smartphone exports in FY25 crossed Rs. 2,00,000 crore (US$ 23.29 billion), registering 53% growth compared to Rs. 1,30,000 crore (US$ 15.14 billion) in FY24. Apple alone contributed a massive 75% of this total, up from 66% in FY24.

The US remained Apple’s largest export destination, with shipments rising to Rs. 85,880 crore (US$ 10 billion), a 78% increase over FY24’s Rs. 48,092 crore (US$ 5.6 billion). Other key players contributing to India’s smartphone exports include Samsung and merchant exporters, though Apple's dominance remains unmatched.

FY26 Outlook Clouded by US Tariffs

Despite the phenomenal growth, Apple’s export momentum may face challenges in FY26. A 26% tariff imposed by the US on Indian imports casts uncertainty on Apple’s export performance and pricing strategy. The impact of this tariff could affect shipment volumes and supply chain efficiency, particularly for US-bound exports.

Additionally, global geopolitical dynamics, trade relations, and currency fluctuations may add complexity to Apple’s manufacturing and export plans.

India’s Smartphone Export Journey: From Rs. 22,686 Crore to Rs. 2 Lakh Crore

Since the launch of the PLI scheme in FY21, India’s smartphone exports have grown nearly tenfold — from Rs. 22,686 crore (US$ 2.64 billion) to Rs. 2,00,000 crore (US$ 23.29 billion) in FY25.

In FY15, smartphones were ranked 167th among Indian export categories, but by December FY25, the sector had surged to the second-highest position, demonstrating the transformative impact of government incentives and corporate investments.

New Government Push to Build Local Component Ecosystem

Recognising the need to reduce import dependence and deepen value addition, the Indian government announced the Rs. 22,919 crore (US$ 2.67 billion) Electronics Component Manufacturing Scheme in March FY25.

The scheme aims to:

• Attract global and domestic investments

• Support local manufacturing of key components

• Strengthen India's integration into global value chains

This initiative complements the PLI scheme and could help companies like Apple localise their supply chain, enhancing cost efficiency and reducing exposure to external risks.

Strategic Benefits for Apple and India

For Apple, India offers cost advantages, a growing domestic market, and policy incentives that favour long-term investments. For India, Apple’s rising exports:

• Create jobs across assembly, logistics, and component sectors

• Improve foreign exchange earnings

• Boost the country’s credibility as a global manufacturing hub

The deepening Apple-India relationship also sends positive signals to other global tech giants looking to diversify away from China and Vietnam.

Final Thoughts

Apple’s record iPhone exports in FY25 are a testament to India's rising stature in the global electronics value chain. Despite headwinds from new US tariffs, the combination of PLI support, rising manufacturing capabilities, and expanding export destinations will likely keep India on the global radar for smartphone manufacturing.

However, maintaining momentum in FY26 and beyond will require policy agility, supply chain localisation, and strategic responses to trade barriers. The government's timely introduction of component manufacturing support is a step in the right direction.

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