India’s smartphone exports have reached a record ₹1 trillion in the first five months of the current financial year, marking a 55 percent jump from the same period last year. This surge, fueled by the government’s Production Linked Incentive scheme and strong performances from companies like Apple, Tata Electronics, and Foxconn, highlights India’s growing role as a global manufacturing hub.
Driving Forces Behind the Export Boom
The Production Linked Incentive scheme has played a key role in this achievement. It offers financial rewards to manufacturers who meet production and export targets, encouraging companies to scale up operations in India.
This initiative has attracted major players, leading to increased local assembly and export of high value devices. For instance, exports in these five months already exceed the full year total from FY23 by 10 percent, showing rapid progress.
Experts point to diversification in global supply chains as another factor. With tensions in other regions, firms are shifting production to India for stability and cost benefits.
Key Players Leading the Charge
Apple’s contract manufacturers have been at the forefront. Tata Electronics and Foxconn together accounted for about 75 percent of the exports, contributing over ₹75,000 crore.
Their focus on iPhone production has driven much of the growth. Apple has ramped up its India operations, exporting models to markets like the US and Europe.
Other companies, including Samsung and local firms, have also boosted numbers. This mix shows a balanced ecosystem where both global giants and Indian players thrive.
- Tata Electronics: Expanded facilities in Tamil Nadu, focusing on premium iPhone models.
- Foxconn: Increased workforce and production lines, targeting high volume exports.
- Samsung: Contributed through mid range and premium devices, adding diversity to exports.
Impact on Economy and Jobs
This export surge is creating thousands of jobs across the supply chain. Factories in states like Tamil Nadu and Uttar Pradesh have hired more workers, especially in assembly and component making.
The growth supports related industries too, such as electronics components and logistics. Government data shows over 100,000 new jobs in the sector this year alone.
On the economic front, it helps narrow the trade deficit. Smartphone exports now rival traditional items like petroleum products, positioning tech as a top earner.
| Metric | FY26 (First 5 Months) | Previous Year (Same Period) | Growth Percentage |
|---|---|---|---|
| Total Exports | ₹1 Trillion | ₹64,500 Crore | 55% |
| Apple Contribution | ₹75,000 Crore | N/A | N/A |
| Jobs Created | 50,000+ | 30,000 | 67% |
| Top Destinations | US, Europe | US, Europe | Stable |
Challenges and Future Outlook
Despite the success, hurdles remain. Global trade tensions, like tariff disputes with the US, could slow momentum. Supply chain disruptions from raw material shortages also pose risks.
Looking ahead, the government aims for even higher targets. Projections suggest exports could reach $30 billion to $35 billion by year end, building on current trends.
Industry leaders call for more incentives to develop local components, reducing import reliance. This could make India self sufficient in tech manufacturing.
Recent events, such as new PLI extensions for electronics, show commitment to this goal. Partnerships with firms like Google for Pixel phones add to the positive outlook.
Global Context and Comparisons
India’s rise comes as China faces slowdowns in manufacturing. Data from research firms shows India overtaking China in smartphone exports to the US in the first half of 2025.
This shift reflects broader trends in supply chain realignment. Countries like Vietnam are competitors, but India’s large workforce and incentives give it an edge.
Comparisons to past years are striking. In FY25, exports hit ₹1.75 lakh crore in 11 months, a 54 percent rise. The current pace suggests FY26 could double that figure.
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