Samsung's exports have declined drastically. In the first quarter of 2025-26, the company's export was reduced by about 20 percent. The reason for this is that Samsung is not getting the benefit of smartphone production linked incentive (PLI) scheme. This decline can prove to be a big shock for India's efforts to become a global smartphone manufacturing hub.
In the June quarter of FY25, Samsung exported smartphones of about $ 1.17 billion. It declined to $ 950 million in the first quarter of FY26 (July-September 2025). This figure is less than $ 1.2 billion in the previous quarter i.e. January-March 2025.
Samsung can no longer take incentives through PLI scheme. Because, the five -year validity (fy21Fy25) of the scheme has been completed. In FY22, the company could not meet the target due to Kovid-19, so incentive was not found for that year. Now the company wants it to be given another chance in FY26 to make up for FY22.
According to reports, India has 10 percent more manufacturing cost than Vietnam and 15 percent more than China. 4-6 percent of incentives used through PLI scheme used to reduce this difference slightly. If incentive is not found then manufacturing in India can be expensive and companies can bow towards Vietnam or China.
After FY26, Apple and Dixon Technologies will also have to be out of the PLI scheme. Dixon makes phones for Motorola, Google and Xiaomi in India. If these companies also reduce exports due to lack of incentives, then India's dream of becoming a smartphone export hub can remain incomplete.
The government admitted that the competition of India is low without incentive, but no firm decision has been taken so far on increasing the PLI scheme. The government has recently launched a new Rs 22,919 crore component PLI scheme, so that the local value edition can be increased.
