Apple Inc’s manufacturing push in India has resulted in a dramatic surge in iPhone exports, with shipments crossing the $50 billion mark under the production-linked incentive (PLI) scheme period. The milestone was achieved by December 2025, just four years after the world’s second-largest company by market capitalization joined the smartphone PLI program in FY22, according to data cited by ET. With three months still left in the five-year tenure applicable to Apple, the export figure might climb further. “In the first nine months of FY26 alone, Apple has already exported nearly $16 billion, taking the cumulative iPhone exports past $50 billion within the PLI period,” ET cited the official familiar with the data. Apple’s performance under the scheme has far outpaced that of its closest global rival, South Korean electric gaint, Samsung. Samsung, another mobile phone exporter, shipped nearly $17 billion worth of devices from India, during its five-year PLI window from FY21 to FY25. India’s growing role in Apple’s global supply chain has been supported by five iPhone manufacturing units, three operated by the Tata Group and two by Foxconn. Together, these factories support a network of nearly 45 component suppliers, including a large number of micro, small and medium enterprises, catering to both domestic demand and global exports. Driven largely by iPhone shipments, smartphones now account for around 75% of India’s total mobile exports. The category has emerged as the country’s top export item in FY25, a dramatic jump from its 167th position in 2015. Although the smartphone PLI scheme is scheduled to end in March 2026, government officials have indicated that support for the sector will continue in some form. A new incentive framework is expected to be designed in consultation with industry stakeholders to sustain manufacturing growth. “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,” an official told ET.Though some mobile phone exports were recorded before the PLI scheme was introduced, officials said the real momentum came after its rollout, particularly following Apple’s decision to bring its supplier ecosystem to India. India is currently the only country outside China where iPhones are manufactured at scale. Samsung was the only one among the 10 PLI beneficiaries to conclude its participation in FY25, having met production targets in FY21, the first year of the scheme, due to its existing manufacturing base. Apple, on the other hand, was still setting up new facilities and, along with companies such as Dixon, failed to meet initial targets amid the pandemic and worsening Sino-Indian relations. This prompted the government to extend the scheme by one year. Under the revised terms, companies were allowed to claim incentives for any five consecutive years within the six-year scheme period. Samsung opted for FY21 to FY25, while Apple and others selected FY22 to FY26. To maintain momentum beyond smartphones, Apple’s vendors and Samsung have now been included in the electronics component manufacturing scheme. Samsung plans to manufacture display module sub-assemblies, a move expected to generate incremental employment for 300 people. The Apple ecosystem, however, is set to dominate the next phase of expansion. Five of its vendors have been selected under the second tranche of the scheme, with Apple-linked companies expected to contribute over 60% of the total investments and employment generation. Major suppliers such as Motherson, Tata Electronics and Foxconn will manufacture iPhone enclosures, while Amperex Technology Limited (ATL) will produce lithium-ion cells. Hindalco will undertake aluminum extrusion for components, ET reported.India has also begun exporting electronic components to China and Vietnam for the manufacture of Apple products including MacBooks, AirPods, Apple Watch, Pencil and iPhones, marking a significant shift in global electronics supply chains.
