India Overtakes China to Become World's Top Smartphone Maker for the US
Date: August 1, 2025
In a monumental shift that signals the growing prowess of India’s electronics manufacturing sector, the country has officially overtaken China to become the top exporter of smartphones to the United States. This significant change has changed the global smartphone supply chain. It has also positioned India as a key player in talks about international tech manufacturing.
India's Rapid Rise in Smartphone Manufacturing
According to recent data reported by Business Standard, India shipped more smartphones to the United States than China for the first time during the second quarter of 2025. This achievement shows India's strong drive to boost electronics manufacturing. This is especially true with government efforts like "Make in India" and the Production Linked Incentive (PLI) scheme.
Apple iPhones Made in India: A Game Changer
One of the major contributors to this historic milestone is Apple Inc., which has been expanding its manufacturing footprint in India since 2020. Apple’s contract manufacturers, including Foxconn, Wistron, and Pegatron, have set up large facilities in India’s southern states, producing models like the iPhone 13, iPhone 14, and most recently, the iPhone 15 and 15 Plus locally.
Apple’s decision to diversify its supply chain away from China came amid rising geopolitical tensions and supply chain disruptions during the COVID-19 pandemic. By moving important parts of its manufacturing to India, Apple has made India a valid option to China for producing high-end electronics.
Government Policies Fueling the Growth
The Indian government’s aggressive push toward electronics self-reliance has played a key role. The PLI Scheme for Large-Scale Electronics Manufacturing has encouraged both global and local companies to invest in India. Companies get subsidies based on their incremental sales and exports, making it financially viable to produce at scale in India.
Moreover, states like Tamil Nadu, Karnataka, and Andhra Pradesh are competing to attract tech companies. They offer land, infrastructure, and quick clearances for factories.
India's Export Numbers Surpass Expectations
In Q2 2025, India exported smartphones worth over $3.2 billion to the US, surpassing China's $2.9 billion. The United States is now the largest destination for Indian smartphone exports. This trend is likely to keep going as more global tech companies see India as a top choice for manufacturing.
India’s smartphone exports have grown by over 35% year-on-year, driven not only by Apple but also by other OEMs like Samsung, Xiaomi, and Lava. Samsung already operates one of its largest mobile factories in Noida, while Xiaomi has been producing in partnership with local manufacturers like Dixon Technologies.
Why is the world choosing India over China?
- Geopolitical Shifts: Trade tensions between the US and China have made Western countries wary of depending too much on Chinese manufacturing.
- Labor Cost Advantage: India’s labor costs remain significantly lower than China, making mass production more profitable.
- Young Workforce: India has a tech-savvy young population ready to be upskilled for electronics manufacturing roles.
- Policy Support: A stable democratic setup and favorable industrial policies have built confidence among global investors.
Challenges India Still Faces
Despite the success, India must address several challenges to maintain its dominance. Infrastructure development, supply chain localization, and quality control are key concerns. Unlike China, which has a mature components ecosystem, India still imports key parts like chips and display panels.
There is also a need to improve logistics and port connectivity to shorten export lead times. Experts believe that investments in these areas will determine whether India can maintain its position as a top smartphone exporter in the coming years.
The Future of 'Make in India'
With India’s proven capability to handle large-scale smartphone production, the country is poised to expand into other electronic sectors like laptops, tablets, and semiconductors. The upcoming India Semiconductor Mission aims to build a complete chip fabrication ecosystem in the country. This could be another turning point for India’s electronics economy.
Tech analysts predict that by 2027, India could control up to 25% of global smartphone production if the momentum continues. Multinationals are already in talks to relocate part of their Chinese production lines to India.
Conclusion: A Defining Moment for India
India’s rise as the world's top smartphone exporter to the US isn’t just a trade statistic—it’s a symbol of changing global dynamics. It signals a change in trust, ability, and long-term economic strategy. While China is still a manufacturing powerhouse, India has shown that it is ready to compete on the global tech stage.
For consumers, manufacturers, and investors, this marks the start of India’s new era in tech dominance.
Frequently Asked Questions (FAQ)
1. Why is India now the leading smartphone exporter to the US?
Due to Apple and other companies shifting production to India and supportive government policies under the Make in India initiative.
2. Which companies manufacture smartphones in India?
Apple (via Foxconn, Wistron), Samsung, Xiaomi, Lava, and Realme are some of the top manufacturers.
3. What is the PLI Scheme?
The Production Linked Incentive Scheme offers financial incentives to companies that increase local production and exports.