NEWS

• India’s share in US smartphone imports rose to 36% (Jan–May 2025) from 11% in 2024.
• China’s share fell from 82% to 49%, showing India’s growing manufacturing capabilities.

HIGHLIGHTS

Production Linked Incentive (PLI) Scheme:

• Flagship government scheme launched in April 2020 to boost manufacturing.
• 14 sectors covered including electronics, with Rs 38,601 crore outlay for large-scale electronics.
• Offers 4–6% incentives on net incremental sales.
• Over $1 billion disbursed (2022–25); Apple’s contract manufacturers (Foxconn, Tata, Pegatron) got 75%.

Impact on Smartphone Manufacturing:

• Apple doubled India production post-PLI launch.
• India now accounts for 1 in 3 US smartphone imports, mainly iPhones.
• Boosted job creation, tech transfer, and exports in electronics.
• Foxconn plans $1.49 billion investment in Tamil Nadu’s iPhone unit (Yuzhan Technologies).

Challenges of PLI:

• Low value addition: Assembly dominates; advanced components still imported.
• Infrastructure bottlenecks and supply chain gaps.
• Trade threats: US may impose 25% tariffs on Indian iPhones (Trump’s stance).

Make in India & Broader Vision:

• Launched in 2014, focuses on investment, innovation, and infrastructure.
• Aims for self-reliance in strategic sectors like electronics.
• Strengthens India’s position in global supply chains.