India’s smartphone exports have surged 59 per cent in the first half (April–September) of FY26 to reach USD 13.4 billion, according to industry estimates. The growth, fuelled largely by the production-linked incentive (PLI) scheme, marks a sharp increase from USD 8.5 billion recorded during the same period last year (FY25).
In September alone, smartphone exports reached USD 1.7 billion, an 87 per cent YoY jump and the highest monthly figure to date. A threefold rise in shipments to the United States propelled the spike, with exports to the US soaring from USD 258 million in September 2024 to a record USD 900 million last month. The US accounted for 52.3 per cent of total smartphone exports in September.
Apple Powers Export Momentum
Apple remained the principal growth driver, with iPhone exports reaching USD 10 billion, contributing over 75 per cent of India’s total smartphone shipments in H1FY26. Industry analysts attribute this surge to strong production capacity under the PLI scheme and the company’s growing focus on India as a manufacturing hub.
The India Cellular and Electronics Association (ICEA) noted that August and September are typically slower export months due to product launches and equipment retrofits. Consumers worldwide also defer purchases ahead of new model launches, leading to a seasonal dip before a rebound in mid-October.
The PLI scheme, introduced to offset India’s cost disadvantage in electronics manufacturing, continues to underpin export growth. The incentive programme is slated to end for Apple in March 2026, while Samsung’s term concluded in FY25. Consequently, Samsung’s smartphone exports fell during the first half of FY26 compared to the same period last year.
Trade Headwinds And Policy Outlook
Despite wider export challenges, electronics, particularly smartphones, have emerged as a bright spot for India’s trade performance this year. This comes even amid the 50 per cent tariffs imposed by the Trump administration. Notably, certain electronic products, including mobile phones, have been temporarily excluded from these tariffs, pending a Section 232 investigation by the US Department of Commerce.
Apple’s suppliers have expanded their Indian manufacturing footprint, with two new iPhone assembly units becoming operational recently. This coincides with robust domestic sales of the new iPhone 17.
However, analysts caution that export growth may hinge on the outcome of US–China trade negotiations. While smartphone exports from China to the US currently attract a 20 per cent ‘fentanyl duty’, Indian shipments enjoy duty-free access. Any rollback of this punitive tariff by Washington could alter Apple’s export strategy and shift volumes between India and China. |
