Apple Inc.'s strategic manufacturing expansion in India has achieved a monumental milestone, with the value of iPhone exports from the country soaring past the $50 billion mark. This remarkable feat was accomplished within the framework of the government's Production-Linked Incentive (PLI) scheme, underscoring a significant shift in global electronics supply chains.
A Staggering Export Achievement
The $50 billion export threshold was crossed by December 2025, according to data cited by The Economic Times. This achievement came just four years after Apple, the world's second-largest company by market capitalisation, enrolled in the smartphone PLI programme in the financial year 2022 (FY22). With three months still remaining in the five-year tenure applicable to Apple, the final export figure is anticipated to climb even higher.
In the first nine months of FY26 alone, Apple exported nearly $16 billion worth of iPhones, pushing the cumulative total beyond the $50 billion landmark within the PLI period. Apple's performance has dramatically outpaced its closest global rival, Samsung. The South Korean electronics giant exported mobile devices worth approximately $17 billion from India during its own five-year PLI window from FY21 to FY25.
Building a Robust Manufacturing Ecosystem
India's escalating role in Apple's global supply chain is supported by a network of five iPhone manufacturing plants. Three of these units are operated by the Tata Group, while two are run by Foxconn. This manufacturing backbone supports a vast network of nearly 45 component suppliers, which includes a significant number of micro, small, and medium enterprises (MSMEs). This ecosystem caters to both rising domestic demand and robust global exports.
The impact of this manufacturing push is profound. Smartphones, driven overwhelmingly by iPhone shipments, now constitute about 75% of India's total mobile exports. In a dramatic transformation, the category emerged as the country's top export item in FY25, a staggering leap from its 167th position back in 2015.
The Road Ahead and Continued Government Support
Although the current smartphone PLI scheme is scheduled to conclude in March 2026, government officials have signalled that support for the sector will continue in a new form. A fresh incentive framework is expected to be designed in consultation with industry stakeholders to sustain the manufacturing growth momentum.
An official acknowledged the ongoing challenges, stating, "We agree that there is still a disability with Indian manufacturers when compared with countries like China and Vietnam and we will continue to offer support to the industry." While some mobile phone exports existed before the PLI scheme, officials credit the real momentum to its rollout, particularly following Apple's decision to bring its extensive supplier ecosystem to India.
India is now the only country outside China where iPhones are manufactured at scale. Notably, Samsung was the sole beneficiary among ten to conclude its PLI participation in FY25, having met its targets early due to an existing manufacturing base. Apple and others like Dixon faced initial hurdles due to the pandemic and geopolitical tensions, prompting a one-year extension of the scheme. Under revised terms, companies could claim incentives for any five consecutive years within a six-year window.
To maintain growth beyond smartphones, Apple's vendors and Samsung have now been included in an electronics component manufacturing scheme. Samsung plans to make display module sub-assemblies, while Apple's ecosystem is poised to dominate the next phase. Five of its vendors have been selected under the scheme's second tranche, with Apple-linked companies expected to account for over 60% of total investments and job creation.
Major suppliers like Motherson, Tata Electronics, and Foxconn will manufacture iPhone enclosures. Amperex Technology Limited (ATL) will produce lithium-ion cells, and Hindalco will handle aluminium extrusion for components. In another significant development, India has begun exporting electronic components to China and Vietnam for the manufacture of other Apple products like MacBooks, AirPods, and Apple Watch, marking a pivotal shift in global supply dynamics.
