New Delhi: In a landmark shift in India’s export landscape, the Apple iPhone has emerged as the country’s most valuable export product in 2025, overtaking automotive diesel for the first time. According to latest industrial data, iPhones worth nearly ₹1.9 lakh crore (around $23 billion) were exported from India during the year, with the United States accounting for a major share of shipments.
Between January and December 2025, India exported smartphones worth approximately $30.13 billion. Of this, nearly 76% is estimated to have come from Apple alone — marking an unprecedented rise in high-value electronics exports.
Why Did Exports Surge?
Industry experts attribute this dramatic jump to two major factors:
- Government’s Production-Linked Incentive (PLI) Scheme
Under the PLI scheme, companies are offered financial incentives for expanding domestic manufacturing. The policy significantly boosted Apple’s local production capacity, making India a major assembly and export hub for iPhones. However, the five-year PLI window for Apple is set to conclude in March 2026, raising questions about future incentive structures.
- Reducing Dependence on China
Global supply chain realignments have also played a crucial role. As multinational companies seek to diversify beyond China under the “China-plus-one” strategy, Apple shifted a part of its production to India. The move not only mitigates geopolitical risks but also leverages India’s growing manufacturing ecosystem.
- From Diesel to Digital
For years, automotive diesel fuel dominated India’s export charts in value terms. The transition from fossil fuel exports to high-end electronics reflects a structural transformation in the economy. The rise of smartphones as the top export signals India’s emergence as a serious global electronics manufacturing base rather than merely a consumer market.
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Strong Manufacturing Backbone in India
Apple’s production footprint in India has expanded rapidly. Currently, five iPhone assembly plants are operational in the country:
- Three plants are operated by Tata Group companies.
- Two plants are run by Foxconn.
Alongside these facilities, around 45 supplier companies — including several MSMEs — form part of the broader supply chain, manufacturing components and parts for both domestic sales and exports.
India is now the world’s second-largest mobile phone producer. Over 99% of mobile phones sold in the country are manufactured locally, indicating deep localization beyond mere assembly.
Rising Demand in the Domestic Market
Consumer preferences in India are also evolving. While budget smartphones once dominated sales, premium devices are witnessing strong growth. According to market research reports, the base model of iPhone 16 emerged as the best-selling smartphone in India in 2025, highlighting a growing appetite for high-end devices among Indian consumers.
Record Revenues and Expansion Plans
Apple reported record revenues across regions including the United States, Europe, Japan and Asia-Pacific during the December quarter. The company is set to open another retail store in Mumbai on February 26, further strengthening its presence in India.
During a recent earnings call, Apple CEO Tim Cook noted strong double-digit growth in emerging markets, particularly India. He confirmed that the company achieved a new quarterly revenue record in the country, adding that India is now the world’s second-largest smartphone market and fourth-largest PC market.
Apple also posted quarterly records in iPhone, Mac and iPad sales, with services revenue reaching an all-time high.
A Structural Shift in India’s Export Story
The rise of the iPhone as India’s most valuable export product underscores a broader transformation. The country is steadily positioning itself as a global electronics manufacturing powerhouse. From fuel exports to high-end technology products, India’s export basket is undergoing a decisive shift — signaling deeper integration into global value chains and a stronger role in next-generation manufacturing.
