Apple's iPhone Exports Surge 63% in India Amid US Tariff Threat

Apple leads record run in India's phone exports, with iPhone exports rising 63% to $7.5 billion in April-July 2025-26, compared to $4.6 billion a year ago. Smartphone exports have broken records, reaching $10 billion, up 52% from the same period in 2024-25. Despite concerns over expansion in India and the threat of 50% duties on Indian exports to the US, Apple's three vendors - Foxconn, Pegatron, and Wistron - have driven growth.

Amidst global economic uncertainties and the threat of 50% duties on Indian exports to the US, smartphone exports have once again broken records. According to industry estimates, smartphone exports reached $10 billion in the four-month period from April to July 2025-26, marking a 52% increase from the same period in 2024-25 [1]. Apple Inc has been a key driver of this growth, with its iPhone exports rising by 63% to $7.5 billion in April-July 2025-26 compared to $4.6 billion a year ago [2].

Apple's three vendors—Foxconn, Pegatron, and Wistron—have been instrumental in driving this growth. Despite concerns that Apple might slow its expansion in India, the company's strong performance indicates a robust demand for its products in the region. The surge in iPhone exports underscores India's growing importance as a manufacturing hub, particularly for the mobile phone sector.

This record-breaking performance comes on the heels of India's electronics exports surging by 47% year-on-year in Q1 of FY 2025-26, reaching $12.4 billion [3]. The robust growth reflects the success of the 'Make in India' initiative and India's transformation into a global manufacturing hub, particularly in the mobile phone sector. The transformation has been enabled by policy incentives, infrastructure upgrades, and a strong push for domestic value addition.

India's electronics industry has grown from $31 billion in 2014-15 to $133 billion in 2024-25, showcasing exponential expansion. This growth is not limited to mobile phones; other segments such as solar modules, networking devices, and electronic components are also contributing significantly to India's export growth [3].

Policy push and government initiatives have been crucial in supporting this growth. The Production Linked Incentive (PLI) schemes for electronics, ease of doing business reforms, and manufacturing clusters have all played a role in cementing India's role as a trusted global hub for electronics manufacturing [3].

Despite the impressive growth in exports, India's trade deficit widened to an eight-month high of $27.35 billion during July 2025, with exports rising 7.29% to $37.24 billion and imports increasing 8.6% year-on-year to $64.59 billion [4]. However, the Commerce Secretary Sunil Barthwal noted that India's goods and services exports are doing well, despite global economic uncertainties.

Ratings agency S&P Global has also recognized India's fiscal consolidation efforts, upgrading its sovereign rating to 'BBB' from 'BBB-' and maintaining a stable outlook [4]. The agency noted that continued policy stability and high infrastructure investment will support India's long-term growth prospects.

References:
[1] https://www.business-standard.com/companies/news/apple-rings-up-record-run-in-india-s-phone-exports-125081801113_1.html
[2] https://currentaffairs.adda247.com/indias-electronics-exports-surge-47-in-q1-2025-26-says-commerce-minister/
[3] https://www.news18.com/business/economy/indias-exports-rise-7-3-to-37-24-billion-in-july-imports-up-by-8-6-yoy-9505801.html