After a brief slowdown in smartphone exports during the festival season in August and September, caused by strong domestic demand, shipments have rebounded, reaching $2.4 billion in October, the highest figure recorded for the month. In comparison, smartphone exports during the same month last year were valued at $2 billion.
For the first seven months of 2025-26 (April-October), total smartphone exports are estimated to have reached $16 billion, representing an increase of nearly 50% over the $10.6 billion recorded during the same period in the previous financial year. Notably, exports in these seven months have already surpassed the $15.5 billion achieved in the entire 2023-24 financial year.
Around 75% of total exports came from two of Apple’s vendors – Foxconn and Tata Electronics, which operate multiple manufacturing plants in India. Samsung contributed approximately 14%, while the remaining 11% came from other companies, including Indian firms such as Padget Technologies and smaller direct exporters.
Typically, exports decline in August and September as global demand slows ahead of product launches, even as domestic sales rise during the Diwali season. This year, however, exports in August increased by 39% and nearly doubled in September compared to the same months last year, according to report.
Despite the positive export momentum, the India Cellular and Electronics Association (ICEA) has warned the government that the US decision to reduce tariffs on Chinese fentanyl imports from 20% to 10%, effective mid-November, could undermine India’s competitiveness.
India faces a 12-14% manufacturing cost disadvantage compared to China. The 5% production-linked incentive (PLI) scheme, which partially offset this gap, has already ended for Samsung in March 2025 and will expire for other companies by March 2026. ICEA cautions that further US tariff reductions could place Indian exports at a disadvantage, media reports.
The PLI scheme has played a key role in boosting India’s mobile exports, facilitating Apple-led supply chain shifts and propelling India from 167th place in 2014-15 to the country’s top export category by 2024-25. ICEA emphasizes that unless the government continues efforts to address India’s manufacturing cost gap, the nation’s smartphone export growth could face challenges, according to the report.
