India’s Smartphone Export Surge: A Historic Achievement

In November 2024, India achieved a significant milestone in its smartphone export industry, surpassing the Rs. 20,000 crore (US$ 2.39 billion) mark for the first time in a single month. The total smartphone exports reached Rs. 20,395 crore (US$ 2.44 billion), reflecting a remarkable 92% increase compared to Rs. 10,634 crore (US$ 1.27 billion) in the same month the previous year. This growth underscores India's rise as a global manufacturing hub for smartphones, with Apple iPhones playing a pivotal role in driving the export surge.

Apple and Samsung Lead the Export Boom

The standout contributor to India's smartphone export success has been Apple, which led the way with Rs. 14,000 crore (US$ 1.67 billion) worth of iPhones exported. This marks a notable shift in Apple's strategy, as the company now exports over 80% of the iPhones produced in India, surpassing its commitment under the Production-Linked Incentive (PLI) scheme, which had aimed for a 70-75% export target for FY25. This achievement highlights the growing influence of India’s manufacturing ecosystem in the global smartphone supply chain.

Samsung also played a crucial role in the export growth, contributing significantly to the overall surge. The success of Foxconn’s iPhone factory in Tamil Nadu and Tata Electronics in Karnataka has been pivotal in reaching this milestone. These manufacturing hubs have helped India become a key player in the global smartphone market.

The Impact of the PLI Scheme

The smartphone PLI scheme has proven to be the most successful among various Make in India initiatives, positioning smartphones as India's third-largest commodity export. Prior to the scheme’s introduction in 2019, smartphones were ranked 23rd in terms of export value. The PLI scheme has propelled electronics exports from seventh place in 2019 to third place by FY25, showcasing the sector's rapid growth.

From 2021 to 2024, the PLI scheme has resulted in Rs. 5,800 crore (US$ 0.69 billion) worth of disbursements, generating Rs. 1.1 trillion (US$ 13.14 billion) in incremental goods and services tax. The scheme has created significant employment opportunities, with around 300,000 direct jobs and 600,000 indirect jobs, primarily for young women entering the workforce for the first time.

India’s electronics export sector has flourished under the scheme, with Rs. 2.87 trillion (US$ 34.29 billion) worth of exports in the four years since its implementation. This success has placed India on the map as a major manufacturing and export hub for smartphones and electronic devices.

The Road Ahead: Sustaining Growth and Global Leadership

Looking ahead, India’s smartphone export sector is poised for continued growth, bolstered by the sustained success of the PLI scheme and increasing demand for Made in India electronics across global markets. With companies like Apple and Samsung scaling up their manufacturing presence in India, the nation’s position as a key player in the global smartphone market is becoming increasingly secure.

The PLI scheme remains crucial to this growth, and further policy reforms and incentives will be necessary to sustain this momentum and support the burgeoning electronics manufacturing ecosystem in India. By fostering innovation and expanding export capabilities, India can continue to strengthen its role in the global technology supply chain.

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