India's Smartphone Exports Surge Past ₹1 Trillion in Just Five Months

Historic Growth in Smartphone Exports

In a remarkable achievement, India's smartphone exports have soared to ₹1 trillion within the first five months of FY 2026, reflecting a significant 55% increase from the same timeframe last year. This growth is primarily driven by the government's Production-Linked Incentive (PLI) scheme, which has encouraged major global companies like Apple to relocate substantial manufacturing activities to India.

Recent data indicates that Tata Electronics and Foxconn have played a pivotal role, contributing nearly ₹75,000 crore, which represents about three-quarters of the total smartphone exports during this period. The PLI initiative has not only spurred growth in exports but has also catalyzed a broader transformation across the sector.

During the April to June quarter, India surpassed China to become the top smartphone exporter to the United States. Devices manufactured in India now constitute 44% of U.S. smartphone imports, a significant increase from just 13% a year prior. This shift is part of a larger trend where manufacturers are seeking more cost-effective and stable production options outside of China.

The PLI scheme has been instrumental in developing new supply chains and generating employment, positioning the smartphone sector as a key player in industrial growth and job creation.

Domestic manufacturers are ramping up their production capabilities, while international firms are pledging further investments. Experts and policymakers believe that India is strategically positioned to enhance its status as a global manufacturing hub.

The government is currently assessing the PLI policy to sustain this upward trajectory. However, leading manufacturers have pointed out challenges related to costs and supply chain efficiencies in India compared to competitors like Vietnam and China.