India's smartphone exports hit record high, touching $13.4B in H1
What's the story
India's smartphone exports have witnessed a meteoric rise, hitting $13.4 billion in the first half of FY26 (April to September). This is a massive 59% jump from the $8.5 billion recorded during the same period last year. The surge is largely attributed to the production-linked incentive (PLI) scheme introduced by the Indian government to boost domestic manufacturing and exports of electronics, especially smartphones.
Export boost
Record $1.7B in exports for September
In September alone, India's smartphone exports to the US tripled, pushing total exports for the month to a record $1.7 billion. This is an 87% increase over the $923 million worth of smartphones exported in September 2024. The US now accounts for over half (52.3%) of India's total smartphone exports, with Apple leading this growth with total iPhone exports worth $10 billion in H1 FY26.
Market leader
Apple drives export growth
Apple has emerged as the biggest contributor to India's smartphone export boom, accounting for over 75% of the country's total smartphone exports in H1 FY26. The company's vendors are expanding their production footprint in India, with two new iPhone assembly plants recently becoming operational. This comes amid strong domestic sales of the new iPhone 17 model.
Scheme effect
PLI scheme boosts exports
The PLI scheme, aimed at offsetting India's cost disadvantages, has been the main driver behind the surge in smartphone exports. However, it is set to end for Apple in March 2026 and has already ended for Samsung in FY25. Samsung's smartphone exports have declined in H1 FY26 compared to the same period last year.
Trade impact
US-China trade talks may impact future exports
The future of India's smartphone export boom largely hinges on the outcome of US-China trade negotiations. Currently, smartphones exported from China to the US are subject to a 20% "fentanyl duty," while Indian exports enjoy duty-free status. If Washington lifts this punitive duty, which has prompted Apple to increase shipments from India to the US, it may reconsider its export strategy between these two countries.