Fuelled by Apple, India’s smartphone exports hit record $7.72 billion in Q1 FY26

By: Shantanu Bhattacharji

Smartphone exports soared from $3.1 billion in FY21 to $24.1 billion in FY25, with Apple contributing $17.5 billion—highlighting its dominance and New Delhi’s growing importance in its global supply chain.

India’s smartphone exports soared to a record $7.72 billion in Q1 of FY26, up 58 per cent from $4.9 billion a year ago, marking the country’s strongest quarterly performance in mobile exports. At the heart of this surge: Apple Inc.

The iPhone maker’s contract manufacturers shipped $6 billion worth of smartphones from India—an 82 per cent year-on-year jump. Apple alone accounted for 78 per cent of total smartphone exports, not only marking its best quarter in India but also cementing the country’s emergence as a high-end electronics hub.

A key driver of this shift is the Production-Linked Incentive (PLI) scheme, launched in 2020 to promote domestic manufacturing. By offering incentives on incremental production and value addition, the scheme has attracted global giants like Apple, Samsung, and others to deepen their India play. What began as an import-substitution initiative has evolved into a powerful export engine.

Smartphone exports have rocketed from $3.1 billion in FY21 to $24.1 billion in FY25. Apple alone contributed $17.5 billion—nearly three-fourths of the total—underscoring both its dominance and India’s strategic role in its supply chain. The Q1FY26 numbers only reinforce this trajectory, positioning India as a credible alternative to China for premium electronics manufacturing.

The broader electronics sector is also on a tear. Overall electronics exports rose 48 per cent year-on-year to $12.4 billion in Q1FY26. Smartphones now account for 62 per cent of that total, up from 58 per cent a year ago—evidence of a maturing ecosystem that is moving up the value chain, from basic assembly to advanced integration and design-led production.

India’s export mix is also becoming more diverse. Padget Electronics, a Dixon Technologies subsidiary, exported $175 million worth of smartphones in the quarter. Samsung, while maintaining a globally diversified production strategy, still contributed 12 per cent of India’s smartphone exports—affirming its ongoing commitment to the country.

But the outlook is not without risks. A US Department of Commerce investigation under Section 232 of the Trade Expansion Act—allowing tariffs on imports deemed threats to national security—could result in duties on electronics. The probe, set to conclude by August 14, may impose new barriers on Indian smartphone shipments to the U.S., disrupting supply chains and denting momentum in a key growth market.

Still, the scale of India’s transformation is striking. Smartphones, ranked 167th in India’s export basket by HS code in FY15, became the country’s top export item in FY25. This meteoric rise reflects the success of targeted industrial policy and India’s growing leverage in global manufacturing realignment.

The challenge now is to navigate geopolitical friction while sustaining investment and ecosystem depth. If India can do that, it stands poised to become a permanent fixture in the global high-tech manufacturing map.