A triumphant year for India’s electronics sector: smartphone exports reached an unprecedented $30 billion in 2025, propelled by the transformative Production Linked Incentive (PLI) program. This achievement not only shatters previous records but also positions India as the world’s second-largest smartphone manufacturer.
The PLI initiative, with its tiered incentives for incremental production and sales, has been instrumental since its inception. Major OEMs have poured billions into Indian facilities, shifting assembly lines from Southeast Asia and China. Foxconn’s massive plants in Tamil Nadu and Apple’s supplier ecosystem in the south have become export hubs, shipping premium devices worldwide.
Breaking down the numbers, Q4 2025 saw monthly exports averaging $2.5 billion, driven by festive season demand in key destinations. Domestic value addition has risen to 35%, thanks to PLI’s focus on components like PCBs and cameras. This localization has slashed costs and enhanced competitiveness against Vietnamese and Korean rivals.
Beyond exports, the ripple effects are profound. MSMEs supplying to giants have scaled up, generating employment in tier-2 cities. Government data reveals a 5x growth in electronics manufacturing since PLI’s rollout, with smartphones leading the charge.
Looking ahead, extensions to PLI 3.0 promise deeper integration into global value chains. Yet, experts caution on sustaining momentum amid rising labor costs and US-China trade dynamics. India’s story, however, remains one of resilience and strategic foresight, setting the stage for trillion-dollar ambitions in electronics.
