India’s smartphone exports have crossed ₹1 lakh crore in the first five months of the financial year 2025-26 (FY26). This marks a record jump, largely driven by contract manufacturers under the Production-Linked Incentive (PLI) scheme.
Highlights & Key Details
- The rise is about 55% year-on-year, compared to the same five-month period in FY25.
- Apple’s two iPhone contract manufacturers in India — Tata Electronics and Foxconn — account for over ₹75,000 crore, or nearly 75% of this export value.
- In comparison, in FY23, the total exports for the whole year were around ₹90,000 crore, making the current pace in FY26 especially strong. Business Standard
What’s Driving This Growth
- The PLI scheme for smartphones is credited with boosting both production capacity and exports.
- Value addition in smartphone manufacturing is increasing: from ~5-6% in 2021 to nearly 19% by FY25. This means more components are being made locally, not just assembly.
- Investment in the component and sub-assembly ecosystem is growing, spurred by the policy incentives.
Implications
- India is rapidly scaling up in global electronics supply chains, particularly in smartphones.
- Increasing value-addition means more jobs, better technology transfer, and stronger domestic manufacturing.
- India may hit even larger export targets by end of FY26, helped by continued growth from big vendors like Apple partners.
Challenges & Things to Watch
- Maintaining momentum: as incentive schemes mature, ensuring cost-competitiveness remains crucial.
- Diversification: too much dependency on a few large players might pose risk if global demand shifts.
- Infrastructure, power, logistics & import duties on components may affect future growth.
Conclusion
Crossing the ₹1 lakh crore export mark in just five months of FY26 is a significant milestone for India’s smartphone industry. The PLI scheme, strong performance from key contract manufacturers like Tata and Foxconn, and increased domestic value addition are all working together to reshape India’s electronics export story. If the trend continues, FY26 could set new records in smartphone exports.
