In a major triumph for India’s local manufacturing initiative, Apple has set a new record for export numbers, reaching approximately $3.8 billion for the April-June quarter. This achievement is largely attributed to the Indian government’s production-linked incentive (PLI) scheme, which has significantly bolstered Apple’s performance in Q1 FY25, according to industry data.
The increase in Apple’s exports reflects a broader trend where manufacturers are adopting a ‘China + 1’ strategy. This strategy aims to reduce dependence on China by diversifying supply chains into other markets. Apple’s success in India is a prime example of this shift, as the company continues to expand its operations outside of China.
In the previous fiscal year (FY24), Apple saw substantial growth, driven by enhanced manufacturing capabilities and a premiumization trend. The company’s sales in India surged to around $8 billion, marking a nearly 33 percent increase from the previous year. This growth is linked to the rising demand for premium devices in India, the world’s second-largest smartphone market.
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Industry forecasts indicate that iPhone shipments in India are expected to rise by over 20 percent this year, thanks to strong domestic manufacturing and efficient distribution networks. Apple’s growing market presence is supported by its strong brand appeal and expanding channel presence.
The Union Budget for 2024-2025 further supports the sector by reducing the basic customs duty (BCD) on mobile phones, printed circuit board assemblies (PCBA), and mobile chargers from 20 percent to 15 percent. Finance Minister Nirmala Sitharaman noted that the Indian mobile phone industry has matured significantly, with domestic production tripling and exports increasing nearly 100-fold over the past six years.
India’s electronics sector has experienced rapid growth, reaching $155 billion in FY23. Production nearly doubled from $48 billion in FY17 to $101 billion in FY23, with mobile phones now constituting 43 percent of total electronics production. This growth has led to a significant reduction in smartphone imports, with domestic manufacturing now covering 99 percent of devices.
