PLI Push and China+1 Strategy Drive India’s Rise as a Global Manufacturing Hub

India’s smartphone export industry has registered a remarkable surge in 2025, reflecting the country’s growing competitiveness in global electronics manufacturing. According to recently released data, India’s smartphone exports reached US$ 15.95 billion during April–October 2025, marking an impressive 49% year-on-year increase, as noted by PMF IAS. This performance strengthens India’s position as one of the world’s fastest-growing smartphone production and export centres.
A major driver behind this export boom is the government’s Production-Linked Incentive (PLI) scheme for large-scale electronics manufacturing. The scheme has encouraged both global and domestic manufacturers to expand production bases in India. Leading companies such as Apple and Samsung have significantly ramped up their India operations, supported by predictable policy frameworks, fiscal incentives and logistics improvements.

The global move towards diversifying supply chains — popularly known as the “China+1” strategy — has also helped India attract fresh investments. As geopolitical uncertainties and pandemic-era disruptions prompted multinational firms to reduce dependence on China, India emerged as a strong alternative, backed by a large labour force, improving infrastructure and favourable production conditions.

The sharp growth in smartphone exports carries substantial economic implications. Electronics, once a major import-heavy segment, is now becoming a pillar of India’s export basket. Higher exports contribute to reducing the trade deficit, diversifying India’s export portfolio and adding resilience to long-term economic performance.
Additionally, the growth of electronics manufacturing fuels employment generation, both directly in factories and indirectly across logistics, packaging and component supply firms. Industry analysts note that rising domestic value-addition levels are a sign that India is moving from assembly-focused operations to deeper integration in the global supply chain ecosystem.
The continued rise in smartphone exports reinforces the momentum of “Make in India”, signalling India's evolving capabilities in high-tech manufacturing. With sustained investment inflows, policy continuity, and increasing integration with global markets, India is steadily positioning itself as a major electronics-export hub.

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