Production-Linked Incentive Fuels India’s Smartphone Export Boom, Reaching ₹1 Trillion

India’s smartphone export sector has experienced remarkable growth, achieving ₹1 trillion in exports within the first five months of fiscal year 2026. This represents a significant 55% increase compared to the same period last year. The government’s Production-Linked Incentive (PLI) scheme has been a key factor, attracting global manufacturers like Apple to expand their manufacturing operations in India. This expansion has also led to broader sectoral transformation and record-breaking growth within the smartphone market. In the April–June quarter, India surpassed China as the leading smartphone exporter to the United States. Made-in-India devices now account for 44% of U.S. smartphone imports, a sharp rise from just 13% a year ago. This shift is part of a larger global supply chain realignment. The PLI scheme has supported the development of new supply chains, leading to job creation and establishing the smartphone sector as a major industrial and employment hub. Domestic and foreign companies are expanding production and increasing investments. The government is currently reviewing the PLI policy to ensure continued growth. However, some leading manufacturers have pointed out cost and supply chain disadvantages in India compared to Vietnam and China.