In a major shift in India’s export dynamics, smartphones have officially become the country’s largest export commodity by value, surpassing long-time leader automotive diesel fuel. During the April to January period of the financial year 2024-25 (FY25), smartphone exports soared to a staggering ₹1,53,774 crore (approximately US$ 18.31 billion), as per the latest data released by the Department of Commerce. This figure marks a significant increase compared to diesel fuel exports, which stood at ₹1,37,029.72 crore (US$ 16.04 billion) in the same period.

A Milestone for India’s Electronics Sector

This milestone marks the first time in Indian trade history that smartphones have taken the top spot among exported commodities. Just a year ago, in FY24, smartphones ranked fourth on the list of top exports. The sector has grown by an astonishing 54.7% year-on-year, reflecting not only the global demand for smartphones but also India's increasing role as a global manufacturing hub, particularly in the premium segment led by Apple’s iPhone.

One of the most noteworthy trends is the explosive growth in exports to the United States, which has played a critical role in this leap. According to official trade data, smartphone exports to the US alone totalled ₹56,383 crore (US$ 6.6 billion) from April to January FY25, representing a 64% jump compared to the same period last year. Within this, iPhone shipments stood out with a 208% surge in January 2025—a testament to India's rising stature in high-end smartphone manufacturing.

Geopolitical Winds Drive Demand

This export surge was also influenced by global trade uncertainties, particularly following the victory of Donald Trump in the US presidential elections in November 2024. Concerns about a possible tariff war and shifting trade alliances likely nudged global companies to diversify supply chains, and India—thanks to recent policy pushes—emerged as a reliable alternative to China.

PLI Scheme: The Game Changer

A cornerstone of this transformation is the Production-Linked Incentive (PLI) Scheme, introduced by the Indian government to bolster domestic manufacturing and exports. Initially perceived as an ambitious bet, the scheme has now shown tangible results by attracting major players like Apple, Samsung, and other global manufacturers to set up or expand production bases in India.

This move has reshaped the export landscape, with smartphones rising from the 23rd spot in FY19 to the number one export item in FY25. According to projections, smartphone exports for the entire fiscal year are expected to cross ₹2,05,032 crore (US$ 24 billion), with nearly two-thirds of that being iPhones manufactured and shipped from India.

Employment and Manufacturing Gains

This boom in smartphone production and export has had a multiplier effect on employment and manufacturing capabilities. The sector has generated over 1.3 million jobs, spanning direct employment in assembly lines and indirect roles across logistics, packaging, and supply chain networks. These jobs not only support economic growth but also help in upskilling India’s workforce in high-tech manufacturing.

Moreover, the emergence of India as a global smartphone export powerhouse indicates the success of government efforts to turn the country into a manufacturing and export-driven economy, reducing dependence on imports and creating a more self-reliant ecosystem.

The Road Ahead: Sustainability and Diversification

While the current success is remarkable, sustaining this momentum will require ongoing policy support, infrastructure development, and supply chain resilience. Industry experts also emphasize the need to diversify exports beyond smartphones to reduce sectoral risk and ensure balanced growth.

Furthermore, as India’s role in the global electronics supply chain solidifies, new opportunities in semiconductor manufacturing, wearable devices, and electric vehicles (EVs) are beginning to emerge, offering the potential for more export-oriented sectors to flourish.

Conclusion

The rise of smartphones as India’s top export commodity is more than just a numerical achievement—it reflects a transformative shift in the country’s industrial and trade strategy. With support from PLI schemes, robust global demand, and favourable geopolitical conditions, India is now positioned as a critical node in the global electronics value chain.

As India sets its sights on exporting high-value, technology-driven goods, this landmark achievement in smartphone exports sets a precedent for what’s possible. If the trajectory continues, India’s export basket may see more tech-centric products in the future, reinforcing the vision of becoming a global hub for innovation and manufacturing.

With the world watching and markets evolving, India’s smartphone export story is only just beginning.

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