India’s New Export King: Smartphones Surpass Oil and Diamonds in FY25

A New Era in Indian Exports: How Smartphones Took the Throne

India has entered a new phase in its export economy, and it’s powered not by oil, not by diamonds, but by smartphones. For the first time in history, smartphones have become the nation’s top export, overtaking long-standing leaders like petroleum products and cut diamonds. This monumental shift reflects India’s growing prowess in high-tech manufacturing, aided by global tech titans like Apple and Samsung who are now heavily invested in Indian production lines.

With strong government policies, strategic manufacturing incentives, and increasing global demand, India has found its stride in becoming a global hub for premium smartphones. This transition marks not just a statistical milestone, but a paradigm shift in India’s economic future — one where high-end technology replaces traditional commodities as the flagbearer of international trade.

India’s Export Landscape Transformed: The Rise of Smartphones 📈

India’s fiscal year 2024-25 (FY25) brought a stunning development: smartphones officially became the nation’s top export, surpassing petroleum products and cut diamonds for the first time. Exports surged by 55 percent year-over-year, reaching a record \$24.14 billion, up from \$15.57 billion the previous fiscal and \$10.96 billion in FY23. This success story is largely credited to robust local manufacturing and government-driven incentives.

The Production-Linked Incentive (PLI) scheme, launched to boost domestic production, played a key role in attracting tech giants like Apple and Samsung. These companies accounted for a staggering 94 percent of total smartphone exports. Notably, Apple has seen a massive boom in Indian production, shipping 3 million iPhones in Q1 2025 alone, with the iPhone 16 being the top model.

Exports to the US and Japan soared, growing nearly fivefold and fourfold respectively in just three years. In FY23, India exported \$2.16 billion worth of smartphones to the US — that figure skyrocketed to \$10.6 billion in FY25. Japan also saw exports increase from \$120 million to \$520 million.

Counterpoint Research and IDC reports highlight a strong shift toward premium models. The average selling price of smartphones in India reached a record \$274 in Q1 2025, with the \$600–\$800 premium segment expanding by 79 percent. Apple’s iPhone 13 and 16 dominated the high-end market, signaling a clear move toward luxury smartphones.

Made-in-India smartphone production rose 6 percent year-on-year, solidifying the nation’s position in the global value chain. With rising global demand and continuous government backing, India’s smartphone industry is not just growing — it’s leading.

What Undercode Say: 🤖

India’s emergence as a smartphone export powerhouse reflects more than a strong fiscal year — it’s a case study in how strategic policy, global partnerships, and demand-led innovation can reshape an economy. For decades, India’s export basket relied heavily on natural resources and raw materials. Now, with a product as advanced and high-tech as smartphones taking the lead, it signals a shift in India’s global trade identity.

At the heart of this change lies the PLI scheme, which has done what many industrial policies fail to achieve: it has attracted consistent foreign direct investment while simultaneously building domestic capacity. Apple’s and Samsung’s trust in Indian infrastructure has not only brought in billions in exports, but also developed a competitive and skilled manufacturing workforce.

Apple’s dominance in exports also hints at India’s growing importance in global supply chains. As geopolitical tensions push companies to diversify away from China, India is becoming a preferred alternative. The “China Plus One” strategy has accelerated this shift, and India is capitalizing on it.

The rising average selling price (ASP) and the boom in the premium segment show an evolution in consumer behavior. Indian consumers are no longer shying away from high-end devices — in fact, they are embracing them. This shift could open the door for even more premium brands to enter or expand within the Indian market, further strengthening local production.

Moreover, the data reveals that India is not just an assembly line for global brands; it’s an export leader with growing influence in critical markets like the US and Japan. The exponential rise in exports to these countries demonstrates trust in India’s manufacturing standards and reliability.

With this transformation, challenges will also follow — infrastructure must keep pace with demand, supply chains need constant optimization, and policies must remain favorable to maintain momentum. But for now, India stands at the forefront of a tech-powered economic shift, where smartphones symbolize much more than just gadgets — they represent a new economic frontier.

Fact Checker Results: ✅

The export data is verified from official government statistics 📊
Apple and Samsung’s dominance aligns with market reports 📱
PLI scheme’s role is confirmed by multiple research sources 📑

Prediction:

If the current momentum continues, India is poised to become the global hub for smartphone exports within the next five years. As international brands expand manufacturing bases and local players grow more sophisticated, India’s export narrative will likely shift toward a tech-dominant portfolio. Expect wearables, tablets, and IoT devices to follow smartphones as next-in-line export leaders.