India has overtaken China as the largest exporter of smartphones to the United States, marking a milestone in global supply chain realignment.
A recent report by Canalys reveals that in Q2 2025, 44% of U.S. smartphone imports came from India — up drastically from just 13% a year earlier. Meanwhile, China’s share dropped from 61% to 25%. This shift underscores India’s emerging prominence in electronics manufacturing.
What’s Driving This Shift?
- Apple’s shift in manufacturing capacity from China to India is a major factor. Through its “China Plus One” strategy, Apple has scaled up production in India, significantly increasing exports to the U.S.
- In Q2 2025, Apple’s iPhone exports from India surged, with Foxconn alone sending over $3.2 billion worth of iPhones to the U.S., accounting for 97% of its output
- Government policies like the PLI scheme, along with increased infrastructure, have steadily expanded India’s electronics manufacturing base to ₹12 lakh crore, and now 99.2% of phones sold domestically are Made in India
Broader Manufacturing Momentum
- Counterpoint data highlights that Apple and Samsung together account for 94% of India’s smartphone exports, while total “Made-in-India” shipments grew 6% in 2024
- India’s smartphone exports overall surged 55% to $24.14 billion in FY25, surpassing traditional exports like petroleum and diamonds
Implications for the Tech Economy
India’s rise as the top smartphone supplier to the U.S. reflects a significant transformation in global electronics manufacturing. With clients like Apple and Samsung ramping up production here, India is becoming a critical global hub. This shift mitigates dependence on China and positions India at the center of international supply chains.
