In a major global trade shift, India now accounts for over 36% of smartphones imported into the United States, up from just 11% in early 2024. This sharp rise comes as global tech giants like Apple and Samsung aggressively move production to India, reducing dependency on China.
In Q2 2025, India’s share reached 44%, overtaking China for the first time.
What’s Driving This Shift?
✅ Apple Leads the Way
Apple now manufactures 20% of its iPhones in India, with expectations to reach 25% by the end of the year. Devices assembled in Tamil Nadu and Karnataka are being exported directly to the U.S.
✅ Decline in China’s Share
Once commanding over 80% of U.S. smartphone imports, China’s share has dropped to below 50%. Trade tensions and diversification strategies are accelerating this shift.
✅ Government Support
India’s Production-Linked Incentive (PLI) Scheme and Make in India initiative have provided massive support for tech manufacturing and exports.
📊 Key Statistics
| Metric | Value (2025) |
|---|---|
| India's share of U.S. smartphone imports | 36% (Jan–May), 44% (Q2) |
| China’s share | ~49% (down from 82% in 2024) |
| Apple’s iPhone production in India | 20% globally |
| Android exports from India | Over 35 million units (Jan–May) |
| Year-on-Year growth | 240%+ in U.S.-bound shipments |
🌍 Global Impact
Geopolitics: Trade tensions push companies toward India as a "China+1" alternative.
Manufacturing Boom: Indian states like Tamil Nadu, Karnataka, and Uttar Pradesh are now smartphone export hubs.
Export Growth: India’s total mobile exports crossed ₹1.2 lakh crore in H1 2025.
❓ FAQs
Q. Are most smartphones sold in the U.S. made in India now?
Nearly 1 in 3 smartphones imported into the U.S. in early 2025 were made in India—up from 1 in 10 just a year ago.
Q. Why are companies moving to India?
To diversify from China, avoid tariff risks, and benefit from India’s low manufacturing costs and policy incentives.
Q. Which companies manufacture in India for export?
Apple (via Foxconn, Wistron, and Tata), Samsung, Motorola, and Xiaomi are among the top exporters.
Published on : 29th July
Published by : SMITA
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