Mapping the surge: US powers record Indian smartphone exports

India’s smartphone exports reached a record $13.34 billion between April and July — a year-on-year (Y-o-Y) surge of over 31 per cent driven by a rise in Apple iPhone shipments to the United States, according to government data. 

Shipments to the US accounted for 70 per cent of India’s total smartphone export value during this period, reaching a record $9.4 billion — a 26 per cent Y-o-Y increase.  In July alone, smartphone exports to the US surged a record 53.8 per cent Y-o-Y to $2.34 billion, which is 67 per cent of India’s total shipments for the month.

 India is expected to account for more than a fourth of the $100 billion smartphone market in the US this year, according to estimates. Apple’s iPhone led the export surge to the US, ahead of Lenovo, which also exports phones to the market from India.

 

 The surge came despite fears that India would lose its competitive edge after a US court invalidated the 20 per cent tariff on Chinese smartphones — a levy which previously favoured India’s duty-free status.

 These developments could compel Apple, which shifted manufacturing to India to capitalise on tariff arbitrage, to move production back to China. China’s appeal is further heightened by India’s 6 to 8 per cent cost disadvantage in iPhone manufacturing.

 India will export smartphones worth $36-40 billion in FY27, according to the Indian Cellular and Electronics Association’s estimates endo­rsed by the Ministry of Electronics and Information Technology (MeitY). India exported smartpho­nes worth $29.3 billion in FY26 and the number is expected to grow by 22 to 36 per cent in FY27. A MeitY official said the government expects 30 to 35 per cent of global iPhone production to shift to India by FY31. The government recently notified a new mobile manufacturing scheme offering over Rs 62,500 crore in incentives to eligible players, succeeding the Production Linked Incentive scheme that concluded in FY27. Smartphones have become India’s top export to the US, accounting for 38.7 per cent of total bilateral export value.