India’s Smartphone Exports Surge 60% to $13.5 Billion in H1 FY26, US Dominates

India’s smartphone export sector has demonstrated remarkable growth during the first half of the current fiscal year. The country’s smartphone exports jumped to $13.5 billion between April and September 2025, compared to $8.5 billion in the same period last year.

This represents impressive growth of over 60% year-on-year, underscoring India’s expanding role in global electronics manufacturing. The surge reflects successful implementation of production-linked incentive schemes and global supply chain diversification.

United States Emerges as Dominant Market

The United States has solidified its position as the primary destination for Indian smartphone exports, accounting for 70% of total shipments. This represents a significant increase from 37% share recorded during the same period last year.

Exports to the US alone soared to $9.4 billion from $3.1 billion, registering a remarkable growth of over 200% year-on-year. The dramatic shift highlights changing global trade patterns and India’s successful penetration of the lucrative American market.

Other Key Export Destinations

Beyond the United States, several other markets have contributed significantly to India’s smartphone export growth. The United Arab Emirates, Austria, the Netherlands, and the United Kingdom emerged as other top destinations for Indian smartphone shipments.

These markets represent both strategic regional hubs and developed economies with strong consumer demand for electronic devices. The diversified export basket reduces dependency on single markets while expanding global footprint.

Policy Initiatives and Manufacturing Boost

The spectacular export performance stems from strategic policy interventions and substantial investments in manufacturing infrastructure. The Production Linked Incentive scheme for smartphone manufacturing has attracted major global players to establish or expand production facilities in India.

Several international brands have shifted significant portions of their manufacturing operations from other countries to India. This manufacturing migration has created substantial employment opportunities while enhancing technical capabilities.

Global Supply Chain Realignment

India’s smartphone export surge coincides with the ongoing global supply chain realignment driven by geopolitical considerations and risk diversification strategies. Many multinational corporations are adopting China-plus-one strategies to reduce manufacturing concentration risks.

India has emerged as a primary beneficiary of this strategic shift due to its large domestic market, improving infrastructure, and policy support. The country’s competitive labour costs and technical workforce further enhance its attractiveness.

Conclusion

India’s smartphone export performance during the first half of FY26 demonstrates the country’s rapidly expanding capabilities in electronics manufacturing. The extraordinary growth in US-directed exports highlights successful market penetration and supply chain integration.

With strong full-year projections and continued policy support, the sector is positioned for sustained expansion. This export success story represents a significant milestone in India’s journey toward becoming a global electronics manufacturing hub.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.