In 2025, Apple’s iPhone became India’s single most valuable export product, with total shipments reaching a record $23 billion.
This surge helped smartphones become India’s number one export category for the first time, officially overtaking automotive diesel fuel. Apple alone accounted for roughly 76% of India’s total $30.13 billion in smartphone exports during the calendar year.
The “India Pivot”: Key Growth Drivers
The doubling of export value from $11.5 billion in 2024 to $23 billion in 2025 is attributed to several strategic shifts:
- The US Concentration: The United States has emerged as the dominant destination, absorbing 78% of India’s total iPhone exports in 2025. This was fueled by a “tariff window” where Made-in-India iPhones avoided the 20% “fentanyl tariffs” that had been applied to Chinese-made electronics.
- Production-Linked Incentive (PLI): Apple’s partners have been the primary beneficiaries of India’s PLI scheme. As the current five-year window approaches its conclusion in March 2026, manufacturers have significantly ramped up volumes to maximize their incentives.
- Deepening Local Supply Chain: While initially just an assembly hub, India’s local value addition has climbed to approximately 19%. A network of nearly 45 component suppliers—including many Indian MSMEs—now supports the local ecosystem.
The Rise of “India’s Foxconn”
The manufacturing landscape in India has shifted from being purely foreign-led to a mix involving major Indian conglomerates.
| Manufacturer | Role & Recent Milestones |
| Tata Electronics | Now operates three of India’s five iPhone plants. Following the acquisition of Wistron’s unit and a 60% stake in Pegatron’s India facility, Tata now contributes nearly 40% of exported iPhones. |
| Foxconn | Continues to lead with over 50% of export volume. It recently began trial production of the iPhone 17 at its Bengaluru plant—the first time a flagship model has seen early-stage production trials in India. |
Outlook for 2026: Risks and Opportunities
While the $23 billion milestone is historic, the sector faces a “twist in the tale” as it enters 2026:
- Competitive Pressure: A recent U.S. Supreme Court ruling (Feb 2026) abolished certain tariffs on Chinese imports. This effectively brings China back to a “zero-duty” status similar to India, which may test the cost-competitiveness of Indian factories.+1
- The “M6” Generation: Apple is reportedly planning to shift the bulk of its US-bound iPhone production to India by the end of 2026. This includes preparations for the “iPhone 18” cycle and the rumored 2027 foldable models.
- Exporting Components: For the first time, India has begun exporting electronic components to China and Vietnam for the assembly of other Apple products like MacBooks and iPads, signaling its move up the global value chain.
