India’s Smartphone Boom Displaces China in US Imports, Exports Soar 240%

In a dramatic shift in global manufacturing dynamics, India has leapfrogged China to become the leading exporter of smartphones to the United States. For the second quarter of 2025, 44% of smartphones shipped to American shores were assembled in India—a meteoric rise from just 13% in the same period last year. The seismic increase reflects the tailwind from India’s Production-Linked Incentive (PLI) scheme, major multinationals increasing local sourcing, and pushback from US buyers against China-centric supply chains.

The export windfall is not only transforming India’s electronics sector but also galvanizing related industries from logistics to chip design. Domestic suppliers, many of whom were Tier-II or Tier-III vendors before 2022, are rapidly scaling up operations, investing in advanced robotics and reskilling workforces to meet mounting demand. Global investors, meanwhile, are funneling capital into India’s contract manufacturing and supply ecosystems, betting on sustained growth as multinationals continue realigning procurement out of China.

Indian policymakers are now advancing reforms to further boost logistics efficiency and intellectual property protection, ensuring the country remains competitive in a fiercely contested export market. Looking forward, the transformation of India’s smartphone sector encapsulates a broader shift: India’s emergence as a node of high-value, high-volume electronics manufacturing with decisive global impact.