India has made a major economic milestone in FY2024–25 by exporting smartphones worth over Rs 2 lakh crore for the first time. Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, shared the news on the social media platform X, hailing it as a record-breaking moment under the government’s Production-Linked Incentive (PLI) scheme.
In recent years, India has attracted major international brands like Apple, Samsung, and Xiaomi, which have established manufacturing units in the country. This influx of global investment has not only bolstered the country’s manufacturing capacity but also enhanced its technological and production capabilities. As a result, India is now positioning itself as a strong competitor to other Asian manufacturing hubs like China and Vietnam.
According to Vaishnaw, smartphone exports rose by 54% compared to the previous financial year, as global value chains (GVCs) continued to integrate with India’s growing electronics manufacturing sector.
“The rise in exports is creating massive employment opportunities, with Indian MSMEs becoming part of the global supply network and the local electronics manufacturing ecosystem expanding rapidly,” the minister said.
PLI Scheme powers India’s electronics boom
The surge in smartphone exports can be largely attributed to India’s implementation of the Production-Linked Incentive (PLI) scheme, which has proven to be a game-changer for the electronics and smartphone industries. Launched in 2020, the PLI scheme aimed to incentivize local manufacturing by offering financial rewards to companies that manufacture products domestically and meet certain production targets.
Under the PLI scheme, the government has provided substantial financial incentives to both domestic and foreign companies to boost their manufacturing capacities. This has helped companies expand their operations, invest in cutting-edge technology, and increase production volumes. The PLI scheme’s success has been particularly evident in the smartphone sector, where India has seen an exponential rise in exports, contributing significantly to its economy.
The surge in exports is credited largely to the government’s PLI scheme. The initiative has significantly boosted local production, helping India cut its reliance on imported smartphones. Today, around 99 per cent of the smartphones sold in India are made domestically.
Export figures beat industry estimates
Earlier projections by the India Cellular and Electronics Association (ICEA) estimated smartphone exports would reach USD 20 billion (around Rs 1.68 lakh crore) in FY25. However, the final figure comfortably surpassed this estimate, confirming India’s rising dominance in global electronics manufacturing.
Looking Ahead: A Bright Future for India’s Electronics Industry
The record-breaking export figures for smartphones in FY2024-25 signal a bright future for India’s electronics and manufacturing sectors. As the demand for smartphones continues to grow worldwide, India is well-poised to take on an even greater role in the global market.
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