India’s smartphone exports have experienced a remarkable surge, becoming the country’s top export item, surpassing traditional leaders like petroleum products and diamonds. This shift underscores a significant transformation in India’s export profile, highlighting the growing importance of its electronics manufacturing sector. The development marks a major milestone for the country’s ‘Make in India’ initiative, which aims to boost domestic production and global competitiveness.
Record-Breaking Export Figures
In the fiscal year 2024-25, India’s smartphone exports reached a record ₹2 lakh crore (approximately $24 billion), a substantial increase from ₹1.29 lakh crore in the previous year. This growth is attributed to the government’s Production Linked Incentive (PLI) scheme, which has played a transformative role in scaling up India’s electronics manufacturing ecosystem. The scheme has not only drawn substantial foreign investments but also enabled India to become a key player in global electronics value chains.
Key Export Destinations
The United States has emerged as the largest destination for India’s smartphone exports, with shipments valued at $7.1 billion in 2024, marking a 50% increase from the previous year. This surge is partly due to manufacturers accelerating shipments ahead of anticipated tariffs. Japan also saw a significant rise in imports, with exports increasing by 222% to $291 million, reflecting India’s growing presence in international markets.
Apple’s Role in the Surge
Apple has been a major contributor to this export boom, with its iPhone shipments from India accounting for approximately 75% of total smartphone exports. The company has relocated 20% of its global iPhone production to India, with over 40 million units produced in FY25, valued at more than $22 billion. This strategic shift aligns with the broader ‘China Plus One’ strategy, aiming to diversify production bases amid geopolitical tensions.
Impact on Domestic Manufacturing
The surge in smartphone exports has also bolstered domestic manufacturing capabilities. The PLI scheme has led to a fivefold increase in mobile phone production over the past decade, from about 60 million units in 2014-15 to approximately 330 million units in 2023-24. This growth has not only enhanced India’s manufacturing prowess but also created over 1.3 million jobs, a significant proportion of which are held by women.
Strategic Implications for India’s Economy
The rise of smartphone exports to the top of India’s export rankings signifies a strategic shift towards high-value manufacturing sectors. This transformation enhances India’s position in global supply chains and contributes substantially to its economic growth. The success of the smartphone sector serves as a model for other industries under the ‘Make in India’ initiative, demonstrating the potential of targeted policies in fostering industrial growth and global competitiveness.
Conclusion
India’s ascent to the top of the global smartphone export market reflects a confluence of strategic policy initiatives, foreign investment, and industry collaboration. The PLI scheme has been instrumental in this success, providing the necessary incentives for manufacturers to scale operations and enhance production capabilities. As India continues to strengthen its position in the global electronics market, the smartphone export sector stands as a testament to the country’s evolving industrial landscape and its potential to lead in high-value manufacturing sectors.
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