Made in India Smartphones Surge: India Overtakes China in US Imports
India now produces 1 in 3 smartphones imported by the US, driven by Apple’s shift to Indian factories and government incentives under the PLI scheme.
image for illustrative purpose
With a sharp rise in its proportion of US smartphone imports, India is quickly becoming a global centre for smartphone manufacturing, upending China's long-standing hegemony. Compared to just 11% in 2024, almost one in three cellphones shipped into the US between January and May 2025 were made in India.
The Increase in Smartphone Exports from India
The US International Trade Commission (USITC) reports that in the first five months of 2025, smartphone imports from India increased threefold year over year to 21.3 million units. These imports exceeded the roughly $7 billion total value recorded for the entire year 2024, increasing 182% to $9.35 billion.
In the meantime, shipments of smartphones to the US from China fell 27% to 29.4 million units, valued at almost $10 billion, over the same time frame. China currently accounts for 49% of US smartphone imports, down from 82% previously, while India is now in second place with 8.3 million devices (14% share), followed by Vietnam.
The shift in India is led by Apple.
Apple is driving this quick expansion by gradually increasing its production in India. A large percentage of iPhones sold in the US between April and June will come from India, as CEO Tim Cook had alluded to in May.
India now accounts for 20% of Apple's worldwide iPhone production capacity, a development fuelled by the nation's Production Linked Incentive (PLI) program. This government program provides incentives and subsidies to entice global businesses to establish local assembly plants.
Issues with the Supply Chain
India's supply chain infrastructure is still less developed than China's, despite this progress. In contrast to just 14 Indian manufacturers, Apple's 2023 supplier list showed 157 Chinese vendors. But since then, there are now 64 Indian suppliers, suggesting a slow but steady change.
A 25% tariff on iPhones built in India was originally threatened by former President Donald Trump in an attempt to promote home manufacturing in the US, highlighting the political concerns in the US.
The Boom in Manufacturing in India
Significant outcomes have come from the Indian government's push for domestic smartphone manufacturing:
- In India, the number of mobile manufacturing facilities increased from two in 2014–15 to 300 in 2024–25.
- To ₹5.45 lakh crore, mobile phone output increased 28 times.
- The value of exports has increased by 127 times to ₹2 lakh crore.
These accomplishments, according to Union Minister of State for Electronics and IT Jitin Prasada, demonstrate that India is emerging as a top global location for electronics production.
.
