Smartphones assembled in India accounted for 44% of U.S. imports in the second quarter, a significant increase from just 13% in the same period last year.
India Overtakes China in Smartphone Exports to the U.S. as Manufacturing Jumps 240%: Report
India has achieved a significant milestone in global trade, overtaking China in smartphone exports to the United States for the first time. According to a report by research firm Canalys, India accounted for 44% of U.S. smartphone imports in the second quarter of 2025, a remarkable leap from just 13% during the same period in 2024. This shift highlights the growing strength of India’s electronics manufacturing sector, with export volumes skyrocketing by over 240% year-on-year.
Apple Leads the Shift
A key contributor to this surge is Apple’s decision to diversify its production footprint outside China. With increasing geopolitical tensions and the need to minimize risks tied to supply chain disruptions, Apple ramped up its manufacturing efforts in India through local partners like Foxconn, Pegatron, and Tata Electronics. These firms have expanded production facilities primarily in Tamil Nadu and Karnataka, states that have emerged as new technology hubs under India’s Production-Linked Incentive (PLI) scheme.
Apple’s iPhone exports from India to the U.S. saw a 76% increase in April 2025 alone, according to customs data. In contrast, exports from China dropped significantly during the same period, signaling a structural shift in Apple’s global supply chain strategy.
Trade Tensions and Strategic Shifts
This transformation is also tied to the broader economic landscape. With potential changes in U.S. trade policy on the horizon, particularly in the event of a political shift, smartphone makers are preparing for a future where tariffs on Chinese goods could return. By moving production to India, companies are hedging against such risks.
The concept of “China +1” — a strategy to reduce dependence on Chinese manufacturing by investing in alternative countries — has rapidly gained traction. India, with its large skilled labor force, supportive government policies, and improving infrastructure, has emerged as the most viable option for this diversification.
U.S. Market Responds to ‘Made in India’
The United States, which is the world’s second-largest smartphone market, has seen a noticeable change in the labels on its imported devices. Consumers are now increasingly purchasing devices assembled in India, particularly mid to high-end iPhones. This trend not only underscores the quality of India-based manufacturing but also represents a shift in the country’s global image — from being a service-sector powerhouse to a serious contender in hardware production.
Moreover, India’s smartphone production growth is not just about Apple. Other major manufacturers such as Samsung and Xiaomi have also increased their local assembly lines in India for both domestic consumption and export purposes.
Government’s Role and Industrial Growth
The Indian government’s PLI scheme has been instrumental in attracting large-scale investment in electronics manufacturing. By offering financial incentives to companies based on their production output, the government has created an environment conducive to high-volume manufacturing.
States like Tamil Nadu have become the epicenter of this transformation, with thousands of jobs created in the electronics sector. The infrastructure around these industrial zones has improved significantly, with better roads, logistics, and power supply, all contributing to seamless manufacturing and export operations.
Future Outlook
With the current growth trajectory, India is well-positioned to become a global leader in smartphone manufacturing. Analysts believe that if current trends continue, India could account for over 50% of U.S. smartphone imports by the end of 2026. Additionally, India is exploring partnerships with other global electronics firms, looking to move into the manufacturing of tablets, laptops, and other consumer electronics.
This shift also presents an opportunity for India to boost its GDP, generate employment, and enhance its position in global value chains. While challenges like component dependency and supply chain bottlenecks still exist, the current momentum shows that India is on a firm path toward becoming the next big manufacturing powerhouse.
Conclusion
India’s rapid rise in smartphone exports to the U.S. is a testament to the country’s evolving industrial capability, driven by a combination of government incentives, global economic shifts, and strategic corporate decisions. As India continues to gain ground in hardware manufacturing, it sets the stage for a future where it can rival not only China but also become a leader in global technology exports.
