India’s iPhone exports hit $23b in 2025: report

India’s iPhone exports reached US$23 billion in 2025, making smartphones the country’s top export category for the first time, according to government data.

The overall smartphone exports increased by 47% from US$20.4 billion in 2024, with Apple accounting for 76% of this volume.

Apple’s exports doubled from US$11.5 billion in 2024, driven by production incentives and diversification from Chinese suppliers.

The shift was also facilitated by the removal of 20% fentanyl tariffs on Chinese electronics exports to the US, which could impact India’s competitiveness due to China’s established supply chains.

Currently, Apple operates five iPhone factories in India, with a supply chain comprising around 45 companies, including MSMEs.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Apple is using India mainly to supply the US

Rising exports track Apple’s plan to ship more US-bound iPhones from India as a hedge against geopolitical risk 1.
In Q2 2025, India supplied 44% of US smartphone imports, up from 13% a year earlier. China fell to 25% from 61% 2.
China still handles most iPhone assembly for markets outside the US 1.
India’s plants lean toward mid-tier models. Premium “Pro” versions stay mostly elsewhere due to local infrastructure and supply chain limits 3.

Tariffs and a thin parts base could slow India’s export gains

Apple shifted assembly away from China partly to limit tariff exposure, yet new US policy adds tariffs on electronics from India at 26% and Vietnam at 46% 4.
One analyst said “there’s nowhere to escape,” and estimated Apple may need a 17–18% US price increase to cover added costs 4.
India launched a production-linked incentive (PLI) scheme, meaning subsidies tied to output, for electronic components on March 28, 2025 5.
The plan targets domestic value-addition moving from 18–20% to over 35%. That shift supports a move from basic assembly toward a sturdier manufacturing ecosystem 6.