In a landmark shift for India’s manufacturing and export landscape, the iPhone has emerged as the country’s most valuable single export item in 2025, with shipments worth approximately $23 billion. For the first time, smartphones have surpassed automotive diesel fuel to become India’s leading export category — totaling $30.13 billion between January and December — with Apple accounting for an impressive 76% of that figure.
This milestone signals more than just export growth; it marks India’s evolution into a global technology manufacturing powerhouse.
From Assembly Hub to Strategic Manufacturing Power
The transformation has been fueled by a combination of global supply-chain diversification and India’s policy push, particularly the Production-Linked Incentive (PLI) scheme. As global technology giants reassessed dependence on China, India emerged as a strategic alternative.
Apple’s expanding footprint includes five iPhone assembly plants — three operated by Tata Group entities and two by Foxconn — supported by a network of nearly 45 suppliers, including numerous MSMEs contributing components for both domestic and international markets.
This ecosystem-driven approach has created scale, reliability, and value addition — critical factors in elevating smartphones to India’s top export position.
India: The World’s Second-Largest Smartphone Market
India today is the second-largest smartphone market globally, driven by a young population, rapid digital adoption, and expanding 5G infrastructure. More than 99% of smartphones sold domestically are now manufactured in India, reflecting the country’s growing manufacturing maturity.
Consumer behavior has also shifted dramatically. Traditionally dominated by budget devices, the Indian market is witnessing premiumization. According to Counterpoint Research, the base variant of the iPhone 16 emerged as the top-selling smartphone model in 2025, signaling aspirational buying patterns and rising disposable incomes.
During Apple’s recent earnings call, CEO Tim Cook highlighted India as a standout growth market, noting strong double-digit revenue growth and a quarterly revenue record in the country. Globally, Apple set all-time December quarter revenue records across the Americas, Europe, Japan, and Asia Pacific — with India contributing significantly to this momentum.
A Structural Shift in India’s Export Profile
For decades, India’s leading exports included petroleum products, gems and jewelry, textiles, and automotive fuels. The ascent of high-value electronics represents a structural shift toward technology-intensive exports.
Major Single Export Items from India (Recent Trends)
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Smartphones (led by iPhone exports) – $30.13 billion
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Refined petroleum products (including diesel fuel)
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Gems and jewelry
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Engineering goods
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Pharmaceuticals
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Textiles and apparel
The rise of smartphones to the top spot reflects India’s progress up the manufacturing value chain — from low-cost assembly to high-value, precision electronics production.
The Strategic Importance of the PLI Scheme
Apple’s five-year PLI window is scheduled to conclude in March 2026. Industry stakeholders argue that the policy has been instrumental in:
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Accelerating foreign direct investment
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Expanding electronics supply chains
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Boosting exports
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Generating employment
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Enhancing technological capabilities
As global supply chains continue to diversify, India’s ability to sustain momentum post-PLI will be closely watched by investors and policymakers alike.
Retail Expansion and Domestic Confidence
Apple is further cementing its commitment to India with expanded retail operations, including the opening of another store in Mumbai on February 26. The company’s growing retail presence signals confidence not only in India as a production base but also as a high-growth consumer market.
India is currently:
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The second-largest smartphone market globally
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The fourth-largest PC market
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One of the fastest-growing premium smartphone markets
These dynamics position India as both a supply engine and a demand driver in the global technology economy.
What This Means for the Global Tech Industry
India’s emergence as the top exporter of iPhones marks a broader geopolitical and economic realignment:
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Diversified Supply Chains: Reduced overdependence on a single manufacturing geography.
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Rise of “China+1” Strategy: India becomes a key alternative.
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Premium Market Expansion: Strong domestic demand complements export growth.
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Manufacturing Sophistication: Transition from labor-intensive sectors to precision electronics.
For global investors and technology leaders, India is no longer just a consumption market — it is an integral pillar of production strategy.
The Road Ahead
The next phase will determine whether India can deepen value addition — moving beyond assembly toward semiconductor manufacturing, advanced component production, and research-led innovation.
If current trends continue, India’s technology exports could redefine its global economic identity over the next decade.
From petroleum to premium electronics, from importer to exporter of high-value devices — India’s business and technology narrative is undergoing a profound transformation.