India Surpasses China as World's Largest Smartphone Exporter
India Surpasses China as World's Largest Smartphone Exporter
In a landmark shift in global manufacturing dynamics, India has officially overtaken China to become the world’s largest exporter of smartphones. According to data released by the World Trade Monitor, India accounted for 34.2% of all smartphone exports in the first half of 2025, narrowly edging out China’s 33.8%.
This dramatic rise is the result of a decade-long government initiative to boost local production, favorable trade reforms, and a surge in global brands relocating manufacturing facilities to Indian states like Tamil Nadu, Uttar Pradesh, and Karnataka.
"What we’re witnessing is not just a production shift — it’s a strategic geopolitical recalibration of the tech supply chain." — Reema Jadhav, Senior Economist, TechAsia Insights
Made in India, Sold Worldwide
Major smartphone brands such as Apple, Xiaomi, and Samsung have significantly expanded their Indian manufacturing capacity. Apple now produces over 28% of its global iPhones in India, up from just 7% three years ago.
India’s lower labor costs, policy incentives, and improving logistics have played a crucial role in attracting these investments, especially amid trade tensions and rising costs in China.
Impact on China and Global Trade
While China remains a dominant player in the global electronics ecosystem, the export drop highlights growing diversification. Analysts predict a multi-polar supply chain future, with Vietnam, India, and Mexico emerging as strong alternatives.
Chinese analysts downplayed the shift, citing domestic focus and value chain maturity. However, global investors are increasingly betting on India as the next major hardware hub.
What’s Next for India?
The Indian government is reportedly finalizing a new round of "Production Linked Incentives (PLI)" to support component-level manufacturing, aiming to reduce import dependency and enhance vertical integration.
For more insights on global tech trade and emerging markets, follow Softmagazines Economy section.