India now accounts for 36% of US smartphone exports, up from 11% just a year ago. Apple has shifted a significant amount of its production capacity to India, which is the cause of this increase. The US-Indian trade relationship and India’s Production Linked Incentive (PLI) program both support the change. Additionally, global brands are being forced to reassess their supply chains due to the escalating geopolitical tensions with China.
Apple’s India Move Drives Smartphone Exports Higher
The US imported 21.3 million smartphones from India between January and May 2025. This is three times more than it was during the same time last year. Additionally, shipments surpassed full-year 2024 figures, rising 182% to $9.35 billion in value. India currently produces 20% of Apple’s iPhones worldwide. Tim Cook had previously stated that few iPhones shipped to the US this year would originate from Indian factories.
Additionally, the PLI scheme, which the Indian government pushed through, has drawn in international electronics companies. In 2014, only two mobile manufacturing units were operating; today, there are over 300 units. As a result, this greatly benefits Indian manufacturing.
Trade Policy and Incentives Power Electronics Growth
Foreign investment in electronics has risen, with $4.07 billion in FDI since FY21. Companies participating in the PLI scheme contributed $2.8 billion of this, indicating an increase in global confidence. Despite the surge, uncertainty remains. Former President Donald Trump has threatened a 25% tariff on Indian-made iPhones, citing unfair advantages.
Additionally, this possible change in trade policy may have an effect on export levels in the future. However, ongoing trade discussions aim to ease tensions. India’s consistent focus on increasing domestic production is driving steady growth. Additionally, infrastructure and simplified regulations support this momentum. Analysts estimate that India may face off against China in the electronics market in the coming decade if this trend continues.
Can Smartphone Exports Make India a Tech Leader?
India’s rapid rise in smartphone exports indicates that it has become a major global electronics center. Global supply chains are changing as a result of Apple’s transition, policy support, and geopolitical considerations. Additionally, India’s manufacturing boom is affecting forex markets as exports and external earnings both rise. India’s foreign trade basket is diversified, and the rupee is strengthened as tech-driven exports increase.
Trade policy adjustments will be essential to sustaining this upward trajectory. India may soon overtake the US as the country’s largest supplier of smartphones if the proper frameworks are upheld. India’s transformation from a low-tech startup to a high-volume electronics exporter represents a significant shift in the world’s manufacturing dominance.
About The Author
