Production of Apple iPhones in India surges 60 pc to Rs 1.89 lakh crore in 2024-25

Of this total output, Apple exported Rs 1.5 lakh crore worth iPhones from India during 2024-25, Minister for Electronics and Information Technology (MeitY) Ashwini Vaishnaw Ashwinin Vasihnaw has stated.

Apple’s production in India is expected to accelerate further with the US-China tariff war breaking out, as a result of which the American tech giant’s exports from the communist country will take a hit.

Since US duties are much lower on India-made smartphones, Apple has a distinct advantage in further expanding its production base in the country.

India’s smartphone exports crossed a staggering Rs 1.75 lakh crore ($21 billion) in 11 months of 2024-25 (April-February), which constitutes a 54 per cent jump over the corresponding figure for the same period of 2023-24, according to the India Cellular and Electronics Association.

Around 70 per cent of the exports were contributed by Apple’s iPhone supply chain with Tamil Nadu-based Foxconn, accounting for close to 50 per cent of the overseas shipments. Exports from the Foxconn factory registered an over 40 per cent jump over the same period of the previous financial year.

Another 22 per cent of the exports came from iPhone vendor Tata Electronics, which has acquired the Wistron smartphone manufacturing factory in Karnataka. Another 12 per cent of the export consignments came from the Pegatron facility in Tamil Nadu, in which Tata Electronics acquired a 60 per cent stake towards the end of January. With the acquisition of the two Taiwanese companies, the Tata group has also emerged as a major producer of iPhones in the country.

South Korean tech giant Samsung contributed around 20 per cent of the total smartphone exports from India.

Vaishnaw earlier said that he expected smartphone exports to reach $20 billion (Rs 1.68 lakh crore) during 2024-25, but the estimate has already been exceeded in 11 months of the current financial year.

India’s electronics goods exports, led by smartphones, have been accelerating in recent years on the back of government’s Production Linked Incentive (PLI) Scheme which has succeeded in attracting foreign tech giants such as Apple and its suppliers, looking to set up alternative supply chains outside China after the Communist country came under US sanctions.

The Centre’s production-linked incentive (PLI) scheme has boosted exports and reduced imports, as domestic production now meets 99 per cent of domestic demand.

The Production Linked Scheme (PLI) for electronics manufacturing has succeeded in attracting a cumulative investment to the tune of Rs 10,213 crore till December 2024, leading to the creation of over 1.37 lakh direct jobs and boosting the country's exports, according to information tabled in Parliament.