India’s Smartphone Exports Soar Past ₹1 Trillion in Five Months, Fueled by PLI Scheme

India’s smartphone exports have achieved a historic milestone, reaching ₹1 trillion in the initial five months of fiscal year 2026. This represents a significant 55% increase compared to the same period last year. This remarkable growth has been primarily driven by the government’s Production-Linked Incentive (PLI) scheme, which has successfully incentivized global manufacturers, including Apple, to significantly expand their manufacturing operations within India. The PLI scheme has played a crucial role in facilitating wider sectoral transformation and remarkable expansion within the smartphone sector. In the April–June quarter, India surpassed China as the leading smartphone exporter to the United States. Made-in-India devices now constitute 44% of U.S. smartphone imports, a substantial increase from just 13% a year earlier. This shift is part of a broader global supply chain realignment as manufacturers seek more cost-effective and stable alternatives to operations based in China. The PLI scheme has spurred the development of new supply chains and contributed to job creation, establishing the smartphone sector as a major industrial and employment hub. Both domestic players and international giants are increasing production capacity and making further investments. Experts and policymakers view India as well-positioned to sustain and expand its role as a global manufacturing hub. The government is currently reviewing the PLI policy to ensure continued growth. However, leading manufacturers have cited cost and supply chain disadvantages in India compared to Vietnam and China.