This threefold jump in smartphone exports has not only compensated for the sharp fall in exports of some key commodities from India to the US, but has also helped sustain overall export growth, despite the US imposing a steep 50 per cent duty across the board and widespread concerns that exports would fall sharply.
The sectors that faced the brunt during the period include gems and jewellery (exports fell 44 per cent Y-o-Y), auto components (down 6.8 per cent) and petroleum products (down 7.78 per cent). As many as 59 of the 98 commodities exported to the US at the two-digit classification level were in the negative zone during this period.
Despite this, India’s overall exports to the US rose 11.28 per cent in the first eight months of FY26. This was possible because while the incremental increase in total exports to the US grew by $5.9 billion, smartphone shipments alone rose by $8.3 billion. This not only neutralised the export contraction in other commodities but also pushed overall exports higher, with support from engineering goods and iron and steel products that remained in positive territory.
Smartphone exports are exempt from the high US duties and enter the market at zero duty. Their importance is evident from the fact that smartphones account for over one-fifth of India’s total exports to the US during April-November FY26, from 8 per cent in the year-ago period. Besides, India’s smartphone exports to the US alone account for 40 per cent of total electronics exports during April-November, which stood at $31.12 billion. With the US smartphone market valued at $105 billion annually and Apple accounting for $45 billion in sales, Made in India iPhones are set to command a huge share of the US market if the current momentum continues.
In mid-2025, President Donald Trump directed Apple to stop exporting iPhones to the US. However, the issue was resolved after CEO Tim Cook promised major investments in the US. The surge in iPhone exports from India has been driven by production-linked incentive scheme and the imposition of a 20 per cent fentanyl-related duty on China.
However, this duty has already been halved. Trump is expected to visit China in April, with expectations that the duty could be removed altogether. This could place India at a disadvantage vis-à-vis China, particularly as Chinese exports would then also enter the US at zero duty, at a time when India’s PLI scheme is nearing its end.
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