India’s position in Apple’s global manufacturing and export strategy strengthened dramatically in 2025, with iPhone exports from the country rising by nearly 85 percent year-on-year and crossing the ₹2 lakh crore mark for the first time since local production began in 2021.
According to industry data, Apple exported iPhones worth ₹2.03 lakh crore between January and December 2025, underscoring India’s rapid emergence as a major export hub for the U.S. technology giant. The sharp jump highlights the success of Apple’s export-led strategy in India, particularly as the company approaches the final phase of the government’s Production-Linked Incentive (PLI) scheme for smartphones.
Industry officials noted that Apple’s export growth in 2025 reflects a deliberate shift in global supply chain diversification. “India is no longer just a manufacturing base for domestic consumption—it has become a critical export engine in Apple’s global operations,” one industry analyst said, pointing to rising volumes shipped to the U.S., Europe, and West Asia.
Strong Performance Under the PLI Scheme
The export surge comes as Apple nears the end of its five-year eligibility period under India’s smartphone PLI scheme, which was launched to boost domestic manufacturing and exports of high-value electronics. Since joining the programme, Apple has focused heavily on scaling exports rather than only meeting local demand.
In the first nine months of FY26, iPhone exports from India reached nearly $16 billion, taking Apple’s total shipments during the PLI period to more than $50 billion, according to official estimates.
Comparatively, Apple’s performance under the scheme has outpaced its competitors. Samsung, India’s other major smartphone exporter, shipped devices worth approximately $17 billion during its entire five-year PLI eligibility period from FY21 to FY25, industry data shows.
“Apple has clearly maximised the incentive framework by building scale quickly and aligning India-based production with global demand,” a senior government official familiar with the PLI programme said.
Expanding Manufacturing Footprint
Apple’s export success is backed by a rapidly expanding manufacturing ecosystem in India. The company now operates five iPhone assembly plants in the country—three managed by Tata Group entities and two by Foxconn, its long-time global manufacturing partner.
These assembly units are supported by a network of around 45 component and supply-chain companies, including several micro, small and medium enterprises (MSMEs). This ecosystem has helped deepen local value addition and generate employment across multiple states.
Officials said the growing participation of Indian suppliers marks a structural shift. “What began as assembly is now moving steadily toward a broader manufacturing and supplier base, which strengthens India’s long-term position in global electronics,” an industry executive said.
Smartphones Become India’s Top Export
Driven largely by iPhones, smartphones emerged as India’s top export category in FY25, overtaking traditional sectors. iPhones alone account for roughly 75 percent of India’s smartphone exports, reflecting Apple’s dominant role in the segment.
India has also become the world’s second-largest mobile phone producer, with over 99 percent of phones sold domestically now manufactured within the country, according to government data. Policymakers view this as validation of India’s push to reduce import dependence while integrating into global supply chains.
The smartphone PLI scheme is scheduled to conclude in March 2026, though officials have indicated that the government is actively examining possible extensions or successor incentive programmes to maintain export momentum.
Strong Domestic Demand for iPhones
Alongside exports, Apple’s presence in the Indian consumer market also strengthened in 2025. The company sold approximately 6.5 million iPhone 16 units in India during the first 11 months of the year, making it the highest-selling smartphone model in the country.
Market analysts attribute the strong sales to a combination of local manufacturing, competitive pricing, expanded retail presence, and rising premium smartphone demand among Indian consumers.
Looking Ahead
As Apple’s India operations mature, analysts expect exports to remain the cornerstone of its strategy, even as domestic sales continue to grow. The company’s success has also reinforced India’s reputation as a viable alternative to traditional manufacturing hubs.
“India’s scale, policy support, and improving supply chain capabilities have made it indispensable to Apple’s future plans,” an analyst said. “The 2025 export numbers are not a peak—they are a signal of what’s coming next.”
