India’s Smartphone Exports to US Surge, Surpassing Diamonds

Smartphones have emerged as India’s leading product export to the United States, primarily driven by Apple iPhones, overtaking non-industrial diamonds in value over the last three quarters. According to recent data from the Department of Commerce, smartphone exports reached $2 billion in the June quarter, in contrast to $1.44 billion for non-industrial diamonds, as reported by Business Standard.

In the financial year 2024 (FY24), total smartphone exports from India amounted to $15.6 billion, with iPhones accounting for a substantial 66% of that figure. The June quarter alone saw smartphone exports surge to $2 billion, surpassing diamond exports, which were valued at $1.3 billion in the same period. Earlier, in the December quarter of FY24, smartphone exports had already begun to outpace diamond exports, reaching $1.42 billion compared to $1.3 billion for diamonds. By the end of FY24, smartphone exports experienced a significant quarter-on-quarter increase of 43%, rising to $2.02 billion, while diamond exports declined by 4.6% to $1.24 billion.

The increase in smartphone exports reflects the effectiveness of India’s production-linked incentive (PLI) scheme for mobile devices. Prior to the introduction of this scheme, smartphone exports totaled only $1.6 billion in global shipments for FY19. By FY23, Apple alone had exported over $5 billion worth of iPhones from India, contributing significantly to the country’s total smartphone exports of $11.1 billion. In FY24, iPhone exports surged to $10 billion, accounting for 66% of the overall smartphone exports, which totaled $15.6 billion.

During this period, smartphone exports to the US saw an impressive 158% increase, totaling $5.56 billion, solidifying their position as India’s second-largest export to the US after diamonds.