The rise in smartphone exports signals not only India’s growing manufacturing strength but also its increasing attractiveness to multinational companies seeking to diversify their supply chains.
Smartphones have surged to become India’s second-largest export category, driven by the success of Apple Inc. and the Centre’s production-linked incentive (PLI) scheme. According to a Business Standard report citing WTO trade classifications, smartphone exports hit $13.1 billion during April-November FY25, a 46 per cent increase from $8.9 billion in the same period last year. The segment has climbed from fourth place in FY24 to second, now challenging automotive diesel fuel as the leading export category.
Apple Inc., driven by strong iPhone exports, accounted for two-thirds of the total smartphone shipments during the period, highlighting the impact of the country’s production-linked incentive (PLI) scheme in boosting domestic manufacturing and exports.
Notably, smartphones overtaking traditional exports such as auto diesel fuel signifies India’s transition from resource-based to technology-driven exports. This aligns with the government initiatives such as Make in India and Digital India.
Also, the PLI scheme has played a pivotal role in boosting smartphone manufacturing by providing financial incentives to producers such as Apple, Samsung, and domestic players. This initiative has spurred investments and fostered export-oriented production, particularly in the country’s electronics hubs such as Tamil Nadu and Karnataka. By aligning policy support with industry growth, the scheme has transformed India into a significant player in the global smartphone export market.
Analysts say the surge in smartphone exports to growing global demand for premium smartphones, particularly in markets like the US and Europe, where Apple has a strong foothold. However, sustaining this growth trajectory hinges on consistent policy support and infrastructure advancements. New Delhi must focus on improving supply chain efficiency and managing input costs to effectively compete with established manufacturing hubs like China and Vietnam.
Smartphone exports have significantly risen, nearly overtaking diesel fuel as the top export category. Between April and November FY25, the gap between smartphone and diesel fuel exports narrowed to just $400 million, compared to a $10 billion lead for diesel in FY24.
From a modest $1.6 billion in FY19—when smartphones were ranked 23rd in export categories—exports skyrocketed to $13.1 billion in FY25. This growth is largely attributed to the Centre’s PLI scheme, launched in FY21, which attracted major global players such as Apple’s suppliers (Foxconn, Pegatron, and Wistron) and prompted Samsung to ramp up its export operations.
By FY20, smartphone exports had already risen to $2.9 billion, securing the 14th spot. This impressive upward trend highlights India’s emergence as competitive electronics manufacturing hub, reshaping its export landscape.
The smartphone export sector saw remarkable growth, with exports climbing from $3 billion in FY21 to $5.7 billion in FY22, moving the sector up to the ninth spot in export rankings.
In FY23, the growth trajectory accelerated, as key suppliers for Apple—Foxconn, Tata, and Pegatron—expanded their production in India. This expansion helped smartphone exports reach nearly $11 billion, propelling the sector to the fifth position among export categories.
By the close of FY24, smartphone exports had surged to $15.6 billion, securing the fourth position, behind automotive diesel fuel, diamonds, and aviation turbine fuel. Although the full data for April-December FY25 has not been released yet, smartphone exports had already reached $15.35 billion, nearly matching the total for FY24.
This upward trend emphasises the sector’s growing significance in India's export landscape, driven by substantial investments and a booming global market for mobile devices.
India is rapidly positioning itself as a key player in global manufacturing and supply chains, benefiting from the broader ‘China+1’ strategy that encourages diversification beyond China to mitigate geopolitical risks and over-dependence on a single country. This shift has allowed New Delhi to close the gap with Beijing in mobile phone exports, marking a significant step forward in its manufacturing ambitions.
Recent trade data highlights the success of this strategy. While China and Vietnam saw export declines of 2.78 per cent and 17.6 per cent, respectively, in FY23-24, India’s exports surged by over 40 per cent. This robust growth highlights India’s increasing importance in global supply chains, driven by its competitive manufacturing sector, favourable government policies, and the global push for diversification.