Apple hits a record $3.8 billion in exports from India in Q1 FY25, driven by local manufacturing.
In a notable success for India’s local manufacturing initiatives, Apple achieved record exports of around $3.8 billion in the April-June quarter. Benefiting from the government’s production-linked incentive (PLI) scheme, Apple set a new all-time high in the first quarter of FY25, as manufacturers adopt the ‘China + 1’ strategy to diversify beyond China.
In the previous fiscal year (FY24), Apple’s sales surged amid increased manufacturing and a growing premiumisation trend, reaching approximately $8 billion in India—a nearly 33 percent year-on-year increase. This growth is attributed to the strengthening premiumisation trend in the world’s second-largest smartphone market.
Industry estimates project over a 20 percent increase in iPhone shipments this year, bolstered by domestic manufacturing support and a robust distribution network. Experts note that Apple’s strong brand appeal and expanded channel presence in India have fueled its growth.
The Union Budget 2024-2025 includes a reduction in basic customs duty (BCD) on mobile phones, printed circuit board assembly (PCBA), and mobile chargers from 20 percent to 15 percent. Finance Minister Nirmala Sitharaman highlighted a three-fold increase in domestic production and a significant rise in mobile phone exports over the past six years, signaling the maturation of India’s mobile phone industry.
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, driven primarily by mobile phones, which now account for 43 percent of total electronics production. The country has dramatically reduced its reliance on smartphone imports, now manufacturing 99 percent of devices domestically.
