NEW DELHI — In a historic shift for the Indian economy, the Apple iPhone has officially become the nation’s single most valuable export item. According to industry data released in late February 2026, iPhone exports surged to approximately $23 billion in the 2025 calendar year, marking a monumental transition from traditional commodity-based trade to high-tech manufacturing.
For the first time, the smartphone category has dethroned automotive diesel fuel as India’s primary export. Total smartphone exports reached $30.13 billion in 2025, with Apple alone accounting for a staggering 76% of that value. This represents a nearly 100% increase from the $11.5 billion exported by Apple just one year prior.
The Engines of Growth
This meteoric rise is attributed to a “perfect storm” of policy and global strategy:
- PLI Scheme: The Indian government’s Production-Linked Incentive (PLI) scheme provided the necessary financial cushioning for global giants to scale operations.
- Supply Chain Diversification: Apple’s aggressive “China plus one” strategy has seen the company move significant production lines to India to mitigate geopolitical risks.
- The Tata Factor: Apple’s manufacturing footprint now includes five major assembly plants. Notably, the Tata Group operates three of these facilities, signaling the emergence of a domestic manufacturing powerhouse working alongside Apple’s long-term partner, Foxconn.
A Global Hub in the Making
The United States remains the primary destination for these “Made in India” iPhones. Industry experts note that India now contributes roughly 20-25% of global iPhone production, a figure expected to rise to 30% by 2027.
“India is becoming the smartphone manufacturing factory for the world,” stated Union Minister Ashwini Vaishnaw. He highlighted that while smartphones were ranked 167th in India’s export list a decade ago, they now lead the charge in the country’s $47 billion electronics export sector.
Future Outlook
While the current PLI window is set to conclude in March 2026, the momentum shows no signs of slowing. Domestically, the iPhone 16 base variant emerged as India’s top-selling smartphone in 2025, proving that India is no longer just a manufacturing hub, but one of Apple’s most critical consumer markets.
With four new semiconductor plants set to begin production later this year, India is positioned to move even further up the value chain, transitioning from assembly to deep-component manufacturing.
