Apple has reached a significant milestone in India, with its iPhone production hitting a freight-on-board (FOB) value of $10 billion in the first seven months of FY25 (April to October 2024), according to Union Minister Ashwini Vaishnaw. This success is largely attributed to the Indian government's Production-Linked Incentive (PLI) scheme.
In a social media post, Vaishnaw highlighted that this figure marks a 37% increase compared to the same period in FY24, calling it a major achievement. Of the $10 billion total, $7 billion worth of iPhones were exported, setting a new record for both Apple and India. This translates to nearly 70% of production being exported, while the remaining $3 billion served the domestic market. Notably, October 2024 saw iPhone production exceed $2 billion in a single month for the first time in India.
The Minister described it as "yet another milestone" for the smartphone PLI scheme, noting that India’s total smartphone exports crossed $10.6 billion in the first seven months of FY25. The PLI initiative, launched by the government in 2020, aims to boost electronics manufacturing on a large scale by offering incentives.
The PLI scheme for smartphones has generated a return of 19 times its initial investment, bringing in ₹1.10 lakh crore in revenue for the government. Apple, along with Samsung, has been a key player in driving this growth, leading to increases in production, exports, and job creation, despite some local companies struggling to meet targets.
Three Taiwanese companies—Foxconn, Pegatron, and Tata Electronics (previously Wistron)—have been central to Apple's production success in India. In the second quarter of FY25, Apple achieved a record revenue milestone in India. CEO Tim Cook expressed his excitement about the company’s progress, noting an “all-time revenue record” in the country and highlighting a year of significant innovation.
Additionally, the Indian Minister shared that Apple has created 175,000 new direct jobs over the past four years, with women filling more than 72% of these positions.
The PLI scheme, which began in FY21, underwent adjustments after most companies, except Samsung, did not meet targets in the first year. The timeline was extended to six years, allowing companies to claim benefits for any five years of their choosing. For most firms, the scheme will conclude in FY26, with Samsung’s participation ending a year earlier in FY25. All incentives are set to be finalized by FY27.
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