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2025-02-09
Apple has achieved a significant milestone in its export journey from India, propelled by the government’s production-linked incentive (PLI) scheme. In the current fiscal year (FY25), iPhone exports from India have reached a record-breaking Rs 1 lakh crore in just 10 months. This achievement highlights the increasing global presence of India’s manufacturing sector and Apple’s growing footprint in the country. The record-breaking exports come on the back of robust growth in iPhone production and a surge in local sales, positioning India as a key market for the tech giant.
Key Highlights:
- Apple’s iPhone exports from India hit Rs 1 lakh crore in FY25, surpassing the previous record of Rs 76,000 crore in the same period last year.
- The highest monthly exports recorded were Rs 19,000 crore in January 2025.
- The production-linked incentive (PLI) scheme is credited with accelerating these impressive figures.
- In the December quarter of 2024, iPhone became the top-selling smartphone model in India.
- iPhones have seen a 23% year-on-year growth in India, with shipments reaching 11 million units in 2024.
- Apple now holds a nearly 10% market share by volume in India’s smartphone market.
India’s growing role in Apple’s global supply chain is a testament to the country’s evolving position as a key manufacturing hub. In this article, we explore the impact of the PLI scheme and the broader implications of these record export figures for both Apple and India.
What Undercode Say:
Apple’s success in India is a case study in how government incentives can drive industrial transformation. The PLI scheme, launched to encourage domestic manufacturing and exports, has been instrumental in enabling global giants like Apple to expand their production capacities within India. By achieving over Rs 1 lakh crore in iPhone exports, Apple has not only positioned India as a critical link in its global supply chain but also enhanced the local economy by boosting manufacturing, job creation, and infrastructure development.
This record export performance is a direct result of Apple’s strategic localization efforts, including partnerships with Indian suppliers and the scaling of its production facilities in India. With the Indian government’s support, the company has been able to significantly reduce costs and improve supply chain efficiencies. The PLI scheme has been crucial in attracting global companies, offering them financial incentives to set up or expand their production units in India. For Apple, these incentives have proven valuable in competing with other manufacturing hubs, such as China, and diversifying its supply chain.
Furthermore, the 30% year-on-year growth in exports (April-January 2025) is a strong signal that India’s smartphone market is maturing. This increase is indicative of both strong local demand and growing export potential. With India now contributing significantly to Apple’s global iPhone sales, the country is emerging as a leading manufacturing and consumption hub. This trend also mirrors the growing premiumization of smartphone markets in India, particularly in tier 2 and tier 3 cities, where the demand for higher-end devices like iPhones is on the rise.
From a market perspective, Apple’s rise in India is emblematic of the larger trend of shifting manufacturing from China to India, driven by factors such as the US-China trade tensions and India’s focus on self-reliance under the ‘Atmanirbhar Bharat’ initiative. The shift is not only beneficial for Apple, but it also strengthens India’s position as a global player in the tech manufacturing space. With 325 to 330 million mobile phones expected to be produced annually, India is now one of the world’s largest mobile phone manufacturing hubs.
Looking forward, Apple’s increasing market share in India also holds the potential to further elevate the nation’s status as a leading player in the smartphone industry. The company’s decision to ramp up production locally aligns with its broader strategy to reduce reliance on China, especially after the pandemic-induced supply chain disruptions. As India continues to scale up its tech manufacturing capabilities, it is likely to see a rise in both exports and domestic consumption of premium devices.
In conclusion, Apple’s record-breaking exports from India represent a convergence of favorable policy, strategic localization, and growing market demand. The success of the PLI scheme has not only benefited Apple but has also set the stage for India to become a formidable force in the global smartphone market, attracting further investment from international players and ensuring long-term economic growth in the sector.
References:
Reported By: https://zeenews.india.com/technology/pli-booster-apple-iphones-hit-record-exports-of-rs-1-lakh-cr-in-10-months-this-fiscal-2856619.html
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