Smartphones, Led by iPhone, Emerge as India's Top Export Category in 2025
In a significant economic milestone, smartphones, largely propelled by Apple's iPhone, have become India's leading export category for the first time, surpassing automotive diesel fuel in 2025, according to official data. This shift underscores the profound impact of government policy measures aimed at boosting exports and transforming the nation's manufacturing landscape.
Export Figures Show Dramatic Growth
Exports of smartphones during January to December 2025 soared to approximately $30.1 billion, marking a substantial 47.5% increase from $20.4 billion in 2024. In contrast, automotive diesel fuel exports stood at $16.3 billion, now relegated to second place. Other major export categories included:
- Cut and unmounted diamonds at $12.4 billion
- Medicines for retail sale at $10.7 billion
- Motor gasoline at $9.7 billion
- Aviation turbine fuel at $9.5 billion
Key Export Destinations and Trends
Data on export destinations reveals that the United States has widened its lead as India's largest market, with exports to the US rising 14.2% to $92.3 billion in 2025 from $80.7 billion the previous year. The United Arab Emirates remained the second-largest destination at $38.6 billion, while exports to China increased 19.3% to $18 billion. However, shipments to the Netherlands and the United Kingdom experienced declines during this period.
iPhone Dominance Drives Smartphone Export Surge
The remarkable surge in smartphone exports was primarily fueled by Apple's iPhone shipments from India to key markets like the US and UAE. Industry estimates indicate that iPhones accounted for nearly three-quarters of total smartphone exports, with shipments reaching about $23 billion in 2025. This represents a near doubling of Apple's exports from the previous year, highlighting the company's expanding manufacturing footprint in India.
Experts attribute this growth to several policy initiatives unveiled by the government, including the performance-linked incentive scheme, which has significantly boosted smartphone exports. Nilanjan Banik, professor of economics at Mahindra University, emphasized that India's rise as a major iPhone exporter reflects both robust policy support and evolving demand trends.
India's Growing Role in Global iPhone Production
"India is emerging as the world's largest seller and exporter of iPhones due to massive local manufacturing scale-up and booming domestic demand," said Banik. He noted that Apple now produces about 25% of global iPhones in India, a testament to the country's manufacturing capabilities.
In 2025, iPhone shipments from India hit a record 14 million units, capturing a 9% volume share and a 28% value share in the global market. This achievement positions India as Apple's third-largest market, driven by factors such as rising incomes, premiumization trends, easier financing options, festive discounts, and expansion into Tier-2 and Tier-3 cities.
Banik added, "India has built a formidable supply chain ecosystem, especially in states like Tamil Nadu and Maharashtra, to sustain this growth further." This development not only boosts exports but also strengthens India's position in the global technology supply chain, paving the way for future economic advancements.
