India has achieved a major milestone in global trade — smartphones have become the country’s top exported commodity, with total exports hitting a record ₹2 lakh crore in FY25. Powered by global giants like Apple and Samsung, this achievement signals a new era in India’s manufacturing and export landscape. However, behind the success story lies a parallel narrative of regulatory challenges, contract violations, and market grey zones.
🚀 The Growth Engine: Apple, Samsung & “Make in India”
The export surge is largely driven by increased manufacturing activity under India’s Production Linked Incentive (PLI) scheme, with Apple and Samsung leading the charge. These companies have made India a vital production hub for both domestic supply and global demand, bolstering employment and foreign exchange earnings.
📊 Key Data: India’s Smartphone Export Landscape (FY25)
| Aspect | Insight |
|---|---|
| Total Smartphone Exports | ₹2 lakh crore (highest among all Indian export commodities) |
| Major Contributors | Apple, Samsung |
| Share of Parallel Exports | ₹9,000–₹10,000 crore (4–5% of total exports) |
| Target Markets for Grey Channel | Russia, Africa |
| Method of Parallel Export | Via intermediaries in Dubai and other transit hubs |
| Contract Breach Concerns | Violates brand agreements, particularly Apple’s retail policies |
| Incentive Exploitation | GST input credit misuse and export incentives via discounted ecommerce pricing |
| Industry Feedback | Parallel exports help meet sales targets, especially during low domestic demand |
| Call for Government Action | AIMRA urges stricter monitoring and policy reforms |
⚠️ The Flip Side: Parallel Exports & Contract Violations
An emerging concern is the rise of unofficial “parallel exports” — where retailers or distributors export smartphones outside officially sanctioned markets. This practice is in clear violation of contracts (notably Apple’s) and often exploits pricing loopholes created by ecommerce discounts and government incentives.
Parallel exports are believed to account for ₹9,000–₹10,000 crore, mainly targeting markets where official brand presence has diminished, such as Russia and parts of Africa. Many of these shipments are routed through transit hubs like Dubai, further complicating traceability and enforcement.
🔍 The Road Ahead: Regulation vs. Opportunity
While the government has rightfully celebrated the booming export numbers, regulatory gaps in the smartphone export ecosystem need urgent attention. Organizations like AIMRA are calling for tighter controls on grey exports and better oversight of incentive misuse.
To sustain India’s leadership in smartphone manufacturing and exports, policymakers may need to strike a balance between promoting growth and curbing non-compliant practices.
India is no longer just a smartphone market — it’s a global manufacturing powerhouse. But with great numbers come great responsibilities.
Glottis Limited 
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