The discussion about iPhone production in India goes beyond simply manufacturing one type of phone; it tests the country's ability to scale up new factories, jobs, and exports with the support of government incentives. The central government provided financial support to mobile companies through the Production Linked Incentive (PLI) scheme to increase production volumes.
According to Electronics and IT Minister Ashwini Vaishnaw, the government has allocated ₹19,000 crore in incentives for mobile manufacturing. As a result, this sector has generated ₹25,000 crore in direct taxes and ₹3 lakh crore in GST collection. He also noted that 25 lakh people are employed in electronics manufacturing, of whom 12 lakh work directly in mobile manufacturing.
However, there is another side to this story: the question is whether India imports components for assembling phones or is gradually starting to produce the parts and technologies that constitute the true value of the device. This debate is important for understanding the progress of the 'Make in India' and 'Made in India' concepts.
PLI stands for Production Linked Incentive. Simply put, it is a program that provides financial incentives to eligible companies for increasing domestic production. The goal of this scheme is to help companies set up factories in India, increase output, invest capital, and make India a more attractive manufacturing hub compared to other countries.
For example, if a company manufactures mobile phones in India and meets the program's criteria, it can receive incentives according to established rules. This increases the economic benefit for the company when expanding production in India. The government expects that in return, investments will come in, jobs will be created, production will rise, and exports will be stimulated. Thus, the state does not directly cover the cost of every phone but encourages companies that increase production according to specific conditions.
A few years ago, most of India's mobile phone needs were met through imports. Now, the situation has changed significantly. According to government data, in 2014–15, about 75 percent of the country's demand for mobile phones was covered by imports, whereas in the fiscal year 2024–25, this figure dropped to approximately 0.02 percent.
Mobile phone production has also accelerated. Government data shows that in 2014–15, the country produced about ₹18,000 crore worth of mobile phones, while in 2024–25, this volume grew to approximately ₹5.5 lakh crore. Over the same period, the total production of electronic goods increased from ₹1.9 lakh crore to ₹11.3 lakh crore.
The PLI scheme played a key role in this transformation. Thanks to it, companies received incentives for large-scale mobile device manufacturing in India. Furthermore, existing factories in the country have expanded, and foreign companies' supply chains have begun shifting towards India.
The most discussed example of these changes is the iPhone from Apple. The company and its manufacturing partners are increasing production in India. This allows India to increase its share in the global electronics supply chain. According to a recent Bloomberg report, about one in four iPhones produced globally is now manufactured in India. This indicates that India is not only producing phones for the domestic market but is also becoming part of the production system that meets global demand.
One factor driving Apple to increase production in India is the desire to reduce dependence on China. Companies refer to this strategy as 'China plus one,' which means establishing factories and supply chains in other countries alongside those already in China to lessen reliance on any single nation. For India, this can translate into opportunities such as investment, job creation, acquisition of technical expertise, and export growth.
Official data is crucial for assessing the results of the PLI scheme. According to information presented to parliament in July 2025, by June 2025, investments under the PLI scheme for large-scale electronics manufacturing reached ₹12,390 crore. During this period, total production reached ₹8.44 lakh crore, and exports under this scheme amounted to ₹4.65 lakh crore.
Furthermore, according to government data provided as of March 2026, the total investment under the scheme reached ₹20,587 crore, and production reached ₹11.61 lakh crore, with exports totaling ₹6.43 lakh crore. These figures reflect the overall achievements over the entire period of the scheme, not just the results for one year. Export growth means that phones manufactured in India are sold in other countries, allowing the country to secure its place in global markets and encouraging companies toward large-scale production.
What benefit does the PLI scheme bring to India? Debates regarding government support for mobile manufacturing have recently intensified. A Bloomberg video report asked how India can benefit if many expensive and critical iPhone components come from abroad.