India’s mobile phone manufacturing sector is on track to post a significant milestone in the current financial year, with total production expected to reach USD 75 billion and exports projected to exceed USD 30 billion by the end of FY26.
Strong Momentum in Electronics Manufacturing
The electronics industry has continued to deliver robust growth, with total electronics production reaching USD 133 billion in 2025, alongside a sharp expansion in exports. The mobile phone segment has remained a central pillar of this growth, supported by sustained capacity expansion and rising global demand for India-made devices.Mobile Phone PLI Nears Completion
The Production Linked Incentive scheme for mobile phones, which continues through FY26, is approaching its conclusion in March 2026. The scheme has played a decisive role in scaling domestic manufacturing, enabling India to significantly expand both output and exports of mobile devices.Industry estimates indicate that the completion of the PLI programme will mark an important transition point for the sector, with manufacturers shifting focus toward scale consolidation and planning the next phase of competitiveness.
Value Chain Deepening Supports Ecosystem Growth
The expansion of electronics component manufacturing through the ECMS programme, along with approvals for semiconductor projects, has strengthened the broader ecosystem. This deepening of the value chain is expected to support higher value addition within the country and reduce reliance on imports over time.Looking ahead, the next phase of growth is expected to depend on India’s ability to further scale manufacturing, specialise across product segments, and integrate more deeply into global value chains for both finished devices and key components.
Exports Gain Strength, Led by Premium Smartphones
India’s export momentum has been underpinned by the rapid expansion of premium smartphone manufacturing. Apple has emerged as a major driver of this shift, expanding its manufacturing footprint in India and pushing exports to record levels, particularly to high-value markets such as the United States.Industry data indicates that India is nearing annual production of around 30 crore mobile phone units, with roughly one in four smartphones manufactured in the country being exported during 2025. Higher average selling prices, supported by premium models from Apple as well as Samsung and Motorola, have significantly boosted export value.
Apple Strengthens Presence in Domestic Market
According to the Worldwide Quarterly Mobile Phone Tracker for the September quarter of 2025, Apple recorded its highest-ever domestic shipments in a single quarter, supplying around 50 lakh iPhones to the Indian market.The company continues to lead both the premium smartphone segment, covering devices priced between Rs 53,000 and Rs 71,000, and the super-premium category priced above Rs 71,000. This strong performance contributed meaningfully to the overall growth of India’s smartphone market during the quarter.
Industry Players Anchor Manufacturing Scale
Members of the India Cellular and Electronics Association include global and domestic manufacturers such as Apple, Foxconn, Dixon, Vivo, Oppo, and Lava. Their expanding operations have positioned India as a key global hub for mobile phone manufacturing, with FY26 expected to further reinforce this status through higher production scale and export intensity.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.