The close of the five-year smartphone production linked incentive (PLI) scheme has been marked by what officials describe as the fastest scale-up of a consumer electronics product in India, with Apple and its vendors exceeding production, export and employment targets, according to final composite filings submitted at the end of FY26.
The filings show cumulative production of about $70 billion (FOB) over FY21–26 against an initial commitment of roughly $38.8 billion, translating into output at about 1.8 times the target. The ramp-up has been driven by iPhone manufacturing under the PLI programme.
Exports have also surpassed projections. Vendors had committed to about $33 billion in exports over the scheme period, while actual shipments reached about $51 billion, or 1.5 times the target. iPhones now account for roughly 76% of India’s smartphone exports. Calendar year 2025 exports are estimated at $23 billion, up from $11.5 billion in 2024.
Jobs and Scale
Employment generation has exceeded initial estimates. While early projections had indicated over 200,000 jobs, the filings show more than 250,000 direct jobs created across the ecosystem, with indirect employment estimated at about 500,000 under a 1:2 multiplier. A significant share of these jobs is concentrated in large assembly units operated by vendors such as Foxconn and Tata, alongside a network of suppliers.
The filings indicate a shift in India’s role within Apple’s global manufacturing network. Around one in four iPhones is now produced in India, with the country emerging as a key export base, particularly for shipments to the US.
Manufacturing scale expanded during the PLI period, with five large factories set up over five years. These facilities employ between about 19,000 and over 40,000 workers, placing them among the largest industrial units in the country.
The supplier ecosystem has also deepened. More than 40 suppliers across 10 states are now part of Apple’s manufacturing chain, with a focus on localisation and integration of domestic firms, including tier-2 and tier-3 players.
Localisation Gains
Domestic value addition has improved over the life of the scheme. Estimates from the ministry of electronics and information technology indicate value addition has increased from about 5% at the start of the scheme to around 19% by FY26.
On product timelines, the filings point to a narrowing gap with China. While the iPhone 14 was launched in India with a three-month lag, subsequent models saw shorter delays, with recent launches taking place simultaneously in both countries, reflecting expanded capabilities in production, testing and product development.
The government is in discussions with industry stakeholders on a potential smartphone PLI 2.0, with a focus on increasing localisation, expanding component manufacturing and improving value addition. Officials said the outcome of the first scheme would inform the design of the next phase.