July 30,2025 — Smartphones assembled in India accounted for 44% of all smartphone imports into the United States during the second quarter of 2025, a sharp rise from just 13% during the same period last year, according to a report released Monday by global technology research firm Canalys.
This marks a 240% increase year-over-year in the number of India-manufactured devices shipped to the U.S., reflecting India’s rapid ascent as a major electronics production hub. The shift highlights changing dynamics in global supply chains, with tech giants increasingly turning to India for manufacturing amid rising concerns over geopolitical risks and cost pressures in China.
Manufacturing Shift Driven by Policy and Strategy
The spike in exports follows sustained efforts by both the Indian government and global smartphone brands to boost local production. Companies such as Apple, Samsung, and Xiaomi have increased assembly operations in India through partnerships with contract manufacturers like Foxconn, Pegatron, and Wistron.
“India is gaining significant ground in global electronics production,” said Ashwin Prasad, a technology analyst with Canalys. “Its rise is powered by strong government backing, infrastructure investments, and a clear shift in international sourcing strategies.”
A key factor behind this growth is India’s Production-Linked Incentive (PLI) scheme, designed to attract investment in domestic manufacturing. With expanded production lines in key states such as Tamil Nadu and Karnataka, India has seen a sharp rise in mobile device output.
Official estimates indicate that India’s smartphone exports exceeded $15 billion in the 2024–25 financial year, up from $11.1 billion in the previous fiscal cycle.
U.S. Import Trends Reflect Broader Strategic Realignment
The U.S. remains one of the largest smartphone markets globally. However, escalating trade tensions and evolving national security policies have pushed U.S.-based companies to reduce their reliance on Chinese manufacturing. This realignment has opened new avenues for India, particularly in the high-end smartphone category.
“Importers in the U.S. are now looking to India as a credible alternative for smartphone sourcing,” said Priya Sharma, senior analyst at IndiaTech Research. “This trend is expected to accelerate as trade and technology partnerships between the two countries deepen.”
India’s Expanding Role in Global Electronics
The findings support India’s broader ambition to become a global leader in electronics production. Beyond assembly, the Indian government is now focusing on building a semiconductor ecosystem, which would further integrate the country into the global value chain.
Analysts predict that India could account for over half of all smartphone imports to the U.S. by 2026 if current trends continue.
The Canalys report signals a major milestone for India’s electronics manufacturing sector. With rising exports, supportive policy frameworks, and growing international demand, India is rapidly positioning itself as a central player in the global smartphone industry.
