India's iPhone manufacturing surpasses $10 billion milestone, driven by PLI scheme's success

India's iPhone manufacturing surpasses $10 billion milestone, driven by PLI scheme's successIndia's Minister of Electronics and Information Technology, Ashwini Vaishnaw, announced on November 25th via X (formerly Twitter) that the Free On Board (FOB) value of Apple iPhone production in India reached a landmark $10 billion (approximately 724.97 billion) between April and October 2024, marking a 37% year-on-year growth

India's iPhone manufacturing surpasses $10 billion milestone, driven by PLI scheme's success

India's Minister of Electronics and Information Technology, Ashwini Vaishnaw, announced on November 25th via X (formerly Twitter) that the Free On Board (FOB) value of Apple iPhone production in India reached a landmark $10 billion (approximately 724.97 billion) between April and October 2024, marking a 37% year-on-year growth. This significant surge underscores the booming Indian electronics manufacturing sector and the resounding success of the government's incentive programs.

Vaishnaw detailed the achievement's composition in his tweet: $7 billion worth of iPhones were exported globally, securing valuable international market share for India, while the remaining $3 billion catered to the burgeoning domestic demand. This data highlights the potential of the Indian domestic market and Apple's growing confidence in it.

Even more remarkably, October 2024 witnessed a record-breaking monthly FOB value exceeding $2 billion for Apple iPhone production. This reflects not only the expansion of Apple's manufacturing scale in India but also the optimization and efficiency improvements within its supply chain. This strong monthly growth signals sustained high growth in India's iPhone production.

Vaishnaw attributed this success to India's Production-Linked Incentive (PLI) Scheme for mobile phone manufacturing. This scheme aims to attract global electronics giants to invest and establish manufacturing facilities in India, boosting the nation's domestic electronics industry. The PLI scheme's success is evident not only in Apple's investment and production growth but also in the significant job creation it has facilitated.

Data reveals that Apple has added approximately 175,000 direct jobs in India over the past four years, with over 72% of these new employees being women. This demonstrates the PLI scheme's positive impact on employment, particularly in providing more opportunities for women, contributing to India's inclusive economic development. The 72% female employee ratio also reflects India's commitment to gender equality.

Apple's success in India has also driven the growth of India's overall electronics exports. By the end of October 2024, India's electronics exports reached a record high of $19.1 billion in seven months, a 24% year-on-year increase. This shows that Apple's investment has not only yielded substantial returns for the company but has also injected strong momentum into the overall international competitiveness of India's electronics industry. The $19.1 billion export figure underscores the rising prominence of Indian electronics manufacturing in the global market.

It's important to note that FOB (Free On Board) is an international trade term indicating that the seller's responsibility and cost extend to delivering the goods to the designated port and loading them onto the buyer's specified vessel. Ownership and risk transfer to the buyer once the goods cross the ship's rail. Understanding this definition helps clarify the interpretation of Apple's production value data in India. The $10 billion figure includes the costs incurred by Apple for shipment to the designated port and loading, but excludes subsequent transportation and insurance costs borne by the buyer.

In conclusion, the surpassing of the $10 billion milestone for Apple iPhone production in India marks a significant milestone for the nation's electronics manufacturing sector and highlights the success of government incentive schemes. This achievement has brought substantial economic benefits, created numerous jobs, and enhanced the global competitiveness of Indian electronics products. With continued government investment and support for the electronics industry, coupled with shifts in the global electronics landscape, India's electronics manufacturing sector is poised for even greater success. This achievement also offers valuable lessons for other developing countries, demonstrating that government policy support and collaborative industry development can propel domestic electronics manufacturing and economic transformation. India's experience is worth emulating for other developing nations to accelerate economic growth and enhance international competitiveness. Apple's success in India also serves as a benchmark for multinational corporations, highlighting the growing potential and attractiveness of the Indian market. We can expect further investments from international companies in India, further driving the flourishing growth of its electronics manufacturing sector. This is crucial not only for India's economic development but will also have a profound impact on the global electronics industry landscape. The rise of Indian electronics manufacturing will provide global consumers with more affordable and high-quality electronics.