Boosted by PLI scheme, India's smartphone exports hit record Rs 1.5 trn

Smartphone exports during the 10 months leading up to January were 56 per cent higher than the Rs 991.2 billion recorded in the same period of FY24

Setting a new record, India's smartphone exports reached Rs 1.55 trillion during the April-January period, according to a report in The Financial Express. Boosted by the government's production-linked incentive (PLI) scheme, exports surpassed Rs 1.31 trillion in FY24. January (2025) alone recorded the highest-ever monthly exports at Rs 250 billion, marking a 140 per cent increase over January 2024.  

 

Exports during the 10 months leading up to January were 56 per cent higher than the Rs 991.2 billion recorded in the same period of FY24.  

 

Apple’s iPhone vendors accounted for nearly 70 per cent of these exports, with Foxconn’s Tamil Nadu facility contributing about half. Foxconn's exports grew by 43 per cent compared to the previous fiscal year.  

 

 

Tata Electronics, which has ramped up production at its Karnataka unit after taking over Wistron’s operations, accounted for nearly 22 per cent. Pegatron, based in Tamil Nadu, contributed 12 per cent, with Tata Electronics recently acquiring a stake in the company. Samsung contributed around 20 per cent of total smartphone exports, while the remainder came from domestic firms and merchant exports.

 

'Smartphone exports to reach $20 bn'

 

The minister for electronics and information technology (MeitY), Ashwini Vaishnaw, has projected smartphone exports to reach $20 billion (Rs 1.68 trillion) in FY25.  

 

A decade ago, smartphones ranked as India's 67th-largest export but now hold the second position. Since the introduction of the PLI scheme in April 2020, fully implemented from April 2021, exports have surged annually. They rose from Rs 233.9 billion in FY21 to Rs 473.4 billion in FY22, nearly doubling.  

Year	Value of smartphone exports
FY21	$ 3.1 billion
FY22	$ 5.8 billion
FY23	$ 11.1 billion
FY24	$ 15.6 billion

(Source: IBEF)  The momentum continued in FY23, with exports doubling again to Rs 916.5 billion. By FY24, exports further climbed to Rs 1.31 trillion, reflecting sustained rapid growth.    What is the PLI scheme? 

The Production Linked Incentive (PLI) Scheme is a government initiative designed to encourage domestic manufacturing by providing financial incentives. Its objective is to position India as a global hub for manufacturing, innovation, and exports.  

 

Under the PLI Scheme for large-scale electronics manufacturing, financial incentives are offered to strengthen local production and attract substantial investments in the electronics sector. This includes mobile phones and specific electronic components, aiming to enhance India's presence in the global supply chain.

 

"Within three years of the Telecom PLI scheme, the scheme has attracted an investment of Rs 3,400 crore, the telecom equipment production has exceeded the milestone of Rs 50,000 crore with exports totalling approximately Rs 10,500 crore, creating more than 17,800 direct jobs and many more indirect jobs," said a government notification issued in July 2024.