India has recorded a major milestone in smartphone exports in the financial year 2024-25 (FY25), crossing the Rs 2 lakh crore mark for the first time. The news was announced by Union Minister of Electronics and IT, Ashwini Vaishnaw, on Tuesday.
Taking to social media platform X, Vaishnaw termed the development as another milestone achieved through the government's production-linked incentive (PLI) scheme.
The minister said that exports of smartphones witnessed a steep 54 per cent year-on-year growth, with India becoming more and more integrated into global value chains (GVCs).
"The growth in exports is generating huge employment opportunities, with Indian MSMEs joining the global supply chain and the domestic electronics manufacturing ecosystem growing very fast," Vaishnaw wrote on X.
Industry data earlier this year revealed that by the end of February, smartphone exports had already touched Rs 1.75 lakh crore, beating the total of the preceding financial year.
This growth spurt has been largely due to the effective roll-out of the PLI scheme, which has not only increased export volumes but also helped bring down imports. Currently, 99 per cent of smartphones utilized in India are made locally.
India Cellular and Electronics Association (ICEA) had initially estimated that smartphone exports would reach $20 billion (or Rs 1.68 lakh crore) in FY25. But actual numbers have gone much higher.
Apple has been the prime driver of this export increase, with almost 70 per cent of total outward shipments credited to its iPhone manufacturing. Significantly, the Tamil Nadu Foxconn factory alone accounted for almost half of these exports, an increase of 40 per cent over last year.
Tata Electronics also had a crucial role to play in the industry's development, adding through its Wistron facility in Karnataka and a majority 60 per cent holding in Pegatron's Tamil Nadu operations—firming up its position as a leading iPhone maker in India.
In concurrent developments, it is reported that Apple is mulling expanding iPhone exports from India to the US. This is a strategic decision viewed as a countermeasure to the high tariffs on Chinese imports and one designed to cushion the cost of doing business from China.
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