India's iPhone output may hit $70B amid export surge
What's the story
Apple is expected to manufacture iPhones worth around $70 billion in India between FY22 and FY26. The figure is based on data submitted by key vendors to the Indian government and is driven by a huge surge in exports to the US. According to a Business Standard report, FY26 is likely to be the strongest year of the five-year production-linked incentive (PLI) scheme for smartphones.
Contribution breakdown
FY26 to be a record year for Apple
The FY26 is expected to contribute nearly 36% of the total iPhone output value generated during the PLI scheme, which ends in March. This is a major jump from previous years and highlights Apple's growing manufacturing footprint in India. The company's partners Foxconn and Tata Electronics have been instrumental in driving this expansion in local production capacity.
Export impact
Exports driving Apple's growth in India
The report also reveals that exports have been the main driver of growth, accounting for about 70% of the total output value. This amounts to some $50 billion from overseas shipments of India-made iPhones. The production momentum has picked up sharply in the last year of the PLI scheme, with suppliers estimating FY26 output could exceed a record annual figure of $25 billion.
Growth trajectory
Steady growth since FY22
Apple's manufacturing footprint in India has grown steadily after the pandemic. The output was worth $2.5 billion in FY22, the first year of the PLI program, before rising to $7.5 billion in FY23 and $13.8 billion in FY24. A major catalyst for this growth was a 20% fentanyl-linked tariff on imports from several countries including China, which was introduced by the US last April.
Market shift
A significant jump in iPhone exports
India's duty-free access to the US market created a cost advantage, prompting Apple to move some export-oriented production out of China. Despite India's estimated 10-14% cost disadvantage, industry estimates suggest this shift has been beneficial for the tech giant. Government trade data shows India's smartphone exports to the US (led by iPhones) jumped 182% between April and December FY26 from $5.04 billion to $14.1 billion.