India’s iPhone exports hit $23 billion in 2025 as smartphones become top export segment

New Delhi: Apple’s iPhone was the single most valuable export from India in 2025 with as much as $23 billion of the devices being shipped out from factories in the country, mostly to the US.

Overall, smartphones became India’s top export category for the first time, dislodging automotive diesel fuel, clocking a total $30.13 billion in January-December, with 76% of this accounted for by Apple.

An analysis of product-specific data based on HS codes, released by the commerce and industry ministry last week, showed automotive diesel fuel was second with exports worth $16.34 billion, followed by diamonds, medicines for retail and motor gasoline. Cumulative smartphone exports jumped 47% from $20.44 billion in 2024. Apple’s exports during the same period doubled from $11.5 billion in 2024.

Apple’s India momentum could face a challenge with the abolition of 20% fentanyl tariffs on iPhone exports from China to the US, following the recent US Supreme Court order. This had termed the reciprocal and fentanyl tariffs illegal.

Apple didn’t respond to queries. Experts said Cupertino-based giant’s success in India can be attributed to three key factors — commencement of the smartphone production-linked incentive (PLI) scheme; the American handset maker’s ability to expand production by bringing in Indian units such as those of Tata group into its supply chain, instead of depending solely on Chinese companies; and the fentanyl tariffs on Chinese electronics exports, including iPhones, to the US.

Incentives needed

Since there was no fentanyl tariff on Indian smartphone exports, Apple could rapidly expand exports from India to the US from January 2025.

The abolition of these tariffs would mean that China’s exports of electronics to the US will be at zero duty, similar to India. This could hurt competitiveness as China has well-developed supply chains and advanced manufacturing, while India is in the process of developing these capabilities.

According to Niti Aayog’s trade report released earlier this month, India’s cost disability in electronics manufacturing vis-à-vis China stands at 11-14%. Part of this was addressed through the PLI scheme, which is set to end by March this year.

Apple has been the biggest beneficiary of the PLI scheme, with its suppliers getting incentives for all the five years it’s been in force. The company now has five iPhone factories — three operated by Tata and two by Foxconn — and a supply chain of nearly 45 companies, including a large number of MSMEs, producing components for Apple’s domestic and global supply chains.