India Tops US Smartphone Imports In Q2 2025 With 44% Share, Exports Hit $15.6B In FY24

Key Takeaways

India surpassed China as the top smartphone supplier to the U.S. in Q2 2025, capturing 44% of imports versus China’s 25%.
India’s smartphone exports reached $15.6 billion in FY2024, driven by schemes like PLI and policies supporting domestic manufacturing.
Apple, Motorola, and Samsung have ramped up production in India, with significant year-on-year export growth to the U.S.
Projections suggest India’s smartphone exports could hit $24 billion in FY2025, anchored by geopolitical shifts and continued policy support.
Despite success in exports, India remains a major importer of high-end components and devices, reflecting its complex consumer-exporter profile.

India’s transformation in the global smartphone landscape has been nothing short of remarkable, evolving from a predominantly import-dependent market to a burgeoning export powerhouse. Recent data highlights a pivotal shift: in the second quarter of 2025, India overtook China as the primary supplier of smartphones to the United States, capturing 44% of U.S. imports compared to China’s 25%. This development underscores broader trends in supply chain diversification, driven by geopolitical tensions and supportive domestic policies, positioning India as a critical node in international electronics trade.

The Shift from Imports to Exports

Historically, India has been one of the world’s largest smartphone markets by volume, second only to China, with significant reliance on imports to meet domestic demand. As of late 2024, India’s smartphone market achieved the status of the second largest globally by unit volume, fuelled by premiumisation and robust year-on-year growth in value, according to reports from the India Brand Equity Foundation. This import-heavy model began changing around a decade ago, when India imported nearly 98% of its mobile phones. Today, local manufacturing satisfies over 99% of domestic needs, a testament to initiatives like the Production Linked Incentive (PLI) scheme and Make in India campaign.

Yet, the narrative extends beyond self-sufficiency. India’s export figures have surged, reaching a record $15.6 billion in fiscal year 2024, marking a 42% increase from the previous year, as per data from the Times of India. The United States emerged as the top destination for these ‘Made in India’ phones, bolstered by major players such as Apple, Foxconn, and others leveraging the PLI incentives. By the first half of 2025, smartphone exports from India grew 30% year-on-year to 40 million units, according to Counterpoint Research, highlighting the country’s growing clout in global supply chains.

Key Drivers of India’s Export Boom

Several factors have propelled this export momentum. Trade tensions between the U.S. and China, including tariffs on Chinese goods, have prompted companies like Apple to pivot manufacturing bases. Reports from CNN Business and CNBC indicate that India’s smartphone shipments to the U.S. accounted for 44% of imports in Q2 2025, up dramatically from 13% in the same period of 2024. This 240% year-on-year surge in manufacturing output has been attributed to strategic shifts, with India now producing 78% of iPhones destined for the U.S. market.

Government policies have played a starring role. The PLI scheme, aimed at boosting electronics manufacturing, has attracted investments from global giants, resulting in a spike in production capacity. For instance, Motorola shipped 1.6 million units to the U.S. from January to May 2025, nearly all manufactured in India, compared to 1 million in the prior year. Samsung also saw exports rise to 945,000 units from 645,000 over the same period. These figures, drawn from industry analyses, illustrate how incentives have catalysed a manufacturing renaissance.

Moreover, India’s demographic advantages— a young, tech-savvy population and a vast labour pool—complement its policy framework. The country’s emergence as an export hub is not merely about volume; it’s about value addition. Premium models, including the iPhone 16, have led export growth in the first half of 2025, as noted in reports from KKN Live, signalling a move up the value chain.

Implications for Global Trade and Investors

This export-led growth carries profound implications for global trade dynamics. As China’s share of U.S. smartphone imports plummeted from 61% to 25% in a year, per Canalys Research, India’s ascent represents a reconfiguration of supply chains. Analysts project that if current trends persist, India’s smartphone exports could reach $24 billion in fiscal year 2025, building on $15.57 billion in FY24 and $10.96 billion in FY23. Such forecasts, based on models from industry trackers like Counterpoint, assume continued policy support and stable geopolitical conditions.

For investors, this shift opens avenues in India’s electronics sector. Companies involved in component manufacturing, assembly, and logistics stand to benefit. Sentiment among market observers is overwhelmingly positive; credible sources like The Economic Times and Business Standard describe this as a “manufacturing triumph,” driven by Make in India initiatives. On social platforms like X, posts reflect buoyant sentiment, with users highlighting India’s rapid growth and its potential to replicate this success in other sectors, though such views remain anecdotal and subject to verification.

However, challenges loom. Supply chain vulnerabilities, including dependence on imported components, could temper growth. Geopolitical risks, such as fluctuating U.S. tariffs, add uncertainty. Analyst-led forecasts from firms like Counterpoint suggest that while exports may grow 20-30% annually through 2027, diversification into semiconductors and other IT devices will be crucial for sustained momentum.

Balancing Imports and Domestic Growth

Even as exports flourish, India’s import story remains relevant. The country continues to import high-end components and certain premium devices, supporting its massive consumer base. In 2024, India’s smartphone market grew significantly in value terms, driven by demand for advanced models. This dual role—as both a major consumer (and thus importer) of technology and an exporter—positions India uniquely. Reports from Mashable and The Logical Indian emphasise how trade uncertainties have accelerated this pivot, with India’s export share in the U.S. market spiking amid tariffs.

In essence, India’s journey in the smartphone arena illustrates a broader economic narrative: from import reliance to export dominance. This evolution not only bolsters India’s GDP through job creation and foreign exchange but also reshapes global perceptions of its manufacturing prowess. Investors eyeing long-term plays in emerging markets would do well to monitor this sector, where policy tailwinds meet technological innovation.

Outlook and Strategic Considerations

Looking ahead, model-based projections indicate India could capture an even larger slice of global electronics exports by 2030, potentially rivalling established hubs if it expands into adjacent areas like semiconductors. Sentiment from verified sources, such as IBEF and Communications Today, points to sustained momentum, with the electronics ecosystem gaining significance in global chains. Yet, as with any growth story, the path involves navigating risks—supply disruptions or policy shifts could alter trajectories.

Ultimately, India’s smartphone saga is a microcosm of its economic ambitions. By leveraging incentives and adapting to global shifts, it has transitioned from a net importer to a key exporter, with the U.S. market serving as a bellwether. This development invites a dry chuckle: in a world where trade wars dictate manufacturing maps, India’s calculated moves have turned potential headwinds into export tailwinds.