India’s share in US smartphone imports surged to just about 36 per cent within the first 5 months of 2025, from about 11 per cent in 2024. China, which continues to dominate the product class, noticed its share drop from 82 per cent to 49 per cent over the identical interval.
India’s rising share — now 1 in 3, pushed largely by Apple iPhones — comes amid ongoing commerce talks with the US. Whereas smartphones are India’s high export to the US by worth, President Donald Trump has threatened a 25 per cent tariff on Indian-made iPhones.
US smartphone imports from India jumped by over thrice year-on-year to 21.3 million items between January and Could this 12 months, in line with knowledge from the US Worldwide Commerce Commis-sion (USITC). In worth phrases (CIF), imports of Indian-made smartphones elevated 182 per cent y-o-y to $9.35 billion, already greater than round $7 billion in the entire of 2024.
In Could, Apple CEO Tim Prepare dinner had mentioned the corporate expects most iPhones offered within the US within the April-June quarter to have India as their nation of origin. Roughly 20 per cent of Apple’s world iPhone manufacturing capability is now based mostly in India.
In the meantime, China exported 29.4 million smartphones to the US between January and Could — a 27 per cent y-o-y drop — valued at round $10 billion. China (49 per cent) and India (36 per cent) have been adopted by Vietnam with 8.3 million items exported, accounting for a share of 14 per cent.
Apple doubled down on manufacturing in India in 2020, after the federal government introduced its flagship Manufacturing Linked Incentive (PLI) scheme to assist smartphone manufacturing within the nation. By its contract producers, the corporate has been the most important beneficiary of the scheme, which has helped it transfer some manufacturing away from China.
Whereas it began by making a few of its older iPhones in India, Apple in the present day produces all fashions, together with the higher-end Professional vary, within the nation.
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Apple’s pivot to India from China for US-bound exports has drawn criticism from Trump, who, in Could, mentioned he’s informed Apple’s chief govt that he doesn’t need the corporate to increase its manufacturing operations in India.
“I’ve way back knowledgeable Tim Prepare dinner of Apple that I anticipate their iPhones that will probably be offered in the USA of America will probably be manufactured and inbuilt the USA, not India, or anyplace else. If that isn’t the case, a tariff of a minimum of 25% have to be paid by Apple to the US. Thanks on your consideration to this matter,” Trump had mentioned in a social media publish.
Nonetheless, Apple is unlikely to overtake its India growth plans within the near-term. In Could, its contract producer Foxconn knowledgeable the London Inventory Alternate of a $1.49 billion funding in one in every of its India items, Yuzhan Applied sciences (India) Pvt Ltd. The brand new plant is predicted to come back up in Tamil Nadu, the place Foxconn already has a serious iPhone manufacturing base.
There are some challenges although. Of Apple’s newest official provider listing, in 2023, as many as 157 of the corporate’s numerous distributors and suppliers manufactured in mainland China, up from 151 the earlier 12 months. The variety of Indian suppliers was 14. Folks within the know say that quantity has now risen to 64, marking a sluggish however regular shift of Apple’s provider base to India.
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In a Lok Sabha reply on Wednesday, Union MoS for Electronics and Info Expertise Jitin Prasada mentioned cell manufacturing items in India have elevated to 300 in 2024-25, from simply 2 in 2014-15. On the similar time, manufacturing of cellphones elevated 28 instances to Rs 5.45 lakh crore, whereas exports elevated 127 instances to Rs 2 lakh crore.
“Complete FDI in area of electronics manufacturing in final 5 years (i.e. since FY 2020-21) is US$ 4,071 mn, cumulative FDI of US$ 2,802 mn has been contributed by MeitY PLI beneficiaries,” Prasada mentioned.