India’s PLI scheme delivers 55M iPhones and ₹3.25 lakh crore in tax collections

PLI scheme drives iPhone production and tax revenue

In 2025, India assembled 55 million iPhones, a 53% increase from the previous year, accounting for roughly a quarter of Apple’s global output. Union Electronics and IT Minister Ashwini Vaishnaw attributed this growth to the government’s Production Linked Incentive (PLI) scheme for mobile manufacturing, which has generated ₹3.25 lakh crore in tax collections and created 12 lakh jobs in the sector.

Under the PLI scheme, the government disbursed ₹19,000 crore in incentives, while direct tax collections reached ₹25,000 crore. Goods and Services Tax (GST) collections from the sector totalled ₹3 lakh crore. Electronics manufacturing in India now employs 25 lakh people, with 12 lakh in mobile manufacturing alone.

Apple expanded its local production to include all variants of the iPhone 17, including Pro models. However, India remains dependent on imports for critical components like processors, memory chips, displays, and batteries.

South Korea fines Apple and Google for app store violations

South Korea’s Korea Media and Communications Commission (KMCC) fined Google KRW 42.9 billion ($32 million) and Apple KRW 20.81 billion ($15.6 million) for violating the Telecommunications Business Act. The violations include forcing developers to use their in-app payment systems, imposing a 26% commission on third-party payments, and prohibiting external payment options.

The KMCC’s investigation, launched in 2022, also found that Apple calculated commissions differently for South Korean and overseas developers. For Korean developers, Apple included VAT in the commission base, while for overseas developers, it used pre-VAT prices. Both companies were required to accept external payments and revise their app review procedures to avoid delays and discrimination.

According to Engadget, Apple and Google already permit external payments in the US and European Union, aligning with regional regulatory requirements.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

India’s PLI scheme has demonstrated tangible results, turning the country into a critical hub for iPhone production while generating significant tax revenue and employment. For founders and operators, this signals the scheme’s potential to drive large-scale manufacturing growth, even if supply chain dependencies persist. The expansion of iPhone 17 Pro models in India also suggests Apple’s confidence in local production capabilities, which could attract further investment in component manufacturing.

The fines against Apple and Google in South Korea highlight the growing global scrutiny of app store practices, particularly around payment systems and developer treatment. For Indian startups operating in the digital economy, these regulatory actions underscore the importance of compliance with local laws, especially in markets with strict oversight like South Korea. The requirement to accept external payments may also create opportunities for third-party payment providers, though the 26% commission on such transactions could limit uptake.

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