India's Electronics Manufacturing Boom: Smartphone Supplier to US, $12 Lakh Crore Industry

India has emerged as the top supplier of smartphones to the US and has become the world's second-largest manufacturer of mobile phones, with electronics manufacturing valued at Rs 12 lakh crore. Exports have increased eightfold to reach 3 lakh crore rupees, reflecting India's focus on becoming a global hub for technology production and supporting the Prime Minister's goal of inclusive access to technology for all citizens.

India has cemented its position as the top supplier of smartphones to the US and emerged as the world's second-largest manufacturer of mobile phones. This significant achievement is reflected in a substantial increase in electronics manufacturing, valued at Rs 12 lakh crore, and exports reaching 3 lakh crore rupees, an eightfold increase [1].

The surge in smartphone exports is primarily attributed to Apple's expansion in India. Apple's iPhone exports from India surged by 82% to $6 billion in Q1 2025, driven by strong demand and production growth [2]. This expansion is part of Apple's 'China Plus One' strategy, which aims to reduce reliance on China by strengthening production bases in alternative locations such as India and Vietnam [3].

The strategic pivot in global smartphone manufacturing hubs is also reflected in the changing dynamics of smartphone exports to the US. India has surpassed China to become the top smartphone supplier to the US market, with its export share jumping from 13% to 44% year-over-year in Q2 2025 [3]. This shift underscores the impact of trade friction and risk diversification strategies by global smartphone manufacturers.

Despite the uncertainty surrounding US tariffs, Apple has continued to expand its manufacturing footprint in India. The company's growth in India has been a key driver of the country's rising smartphone exports, particularly to the US [3]. The US Commerce Department is currently probing sectors deemed vital to national security, such as semiconductors, under Section 232 in the Trade Expansion Act. Until these probes are complete, there will be no levies on smartphone exports to the US, including iPhones made in India [1]. However, the potential for future tariffs remains, which could impact the pricing of locally-assembled iPhones compared to those made in Vietnam or China [1].

The India Cellular & Electronics Association (ICEA) has played a significant role in conceptualising schemes such as the Phased Manufacturing Program (PMP) and the Production Linked Incentive (PLI) scheme for Mobile Phones. These initiatives have helped foster a robust ecosystem for electronics manufacturing in India [2]. ICEA is also committed to enhancing design and R&D capabilities and making the country an export hub for various electronics hardware verticals [2].

India's electronics manufacturing sector is poised for further growth, with the government targeting $500 billion in electronics manufacturing and $180–200 billion in exports by 2031. The sector's potential is further bolstered by the recent announcement of a 95% reduction in security test evaluation fees under the Communication Security Certification Scheme (ComSec), effective from August 1, 2025 [4]. This reform will make security certification more affordable and accessible, thereby boosting indigenous R&D, strengthening India’s IP base, and easing compliance for both new and legacy equipment.

In conclusion, India's rise as a global smartphone manufacturing hub is a testament to its strategic planning, industry collaboration, and government support. With continued investment and innovation, India is well-positioned to achieve its vision of becoming a global technology leader.

References:
[1] https://m.economictimes.com/news/economy/foreign-trade/apples-india-exports-to-emerge-unscathed-from-trump-tariffs/articleshow/123016524.cms
[2] https://www.business-standard.com/companies/news/apple-iphone-exports-from-india-increase-82-to-6-billion-in-q1-125080300435_1.html
[3] https://www.india-briefing.com/news/india-becomes-top-us-smartphone-supplier-in-q2-2025-38953.html/
[4] https://in.linkedin.com/company/india-cellular-electronics-association