How 1 in 3 Smartphones in the USA Are Now Indian-Made — And Why China Is Worried

In a major shake-up of global manufacturing, India is rapidly emerging as a tech manufacturing powerhouse. According to the latest trade figures and market analysis, 1 out of every 3 smartphones shipped to the United States in 2024–25 was manufactured in India. This marks a huge milestone not just for India, but also signals a dramatic shift away from China’s long-standing dominance in electronics manufacturing.

This development isn’t a one-off fluke — it’s the result of years of planning, policy reforms, and global realignments.

The Rise of "Made in India"

For years, "Made in China" dominated electronics labels across the world. From budget Android phones to premium iPhones, China was the go-to hub for global brands. But recent years have seen a strategic pivot, especially among companies that want to de-risk their supply chains due to:

• The U.S.–China trade war

• COVID-19 lockdowns and supply chain disruptions

• Rising labor costs in China

• Geopolitical uncertainty

Enter India — the world’s largest democracy, a young and skilled workforce, and a government laser-focused on becoming a global manufacturing hub.

 Government Push: PLI Scheme & Beyond

One of the biggest enablers of this shift has been the Production-Linked Incentive (PLI) Scheme launched by the Government of India. This ambitious program offers financial incentives to manufacturers based on their output, export volumes, and investments in local infrastructure.

Key highlights include:

• $10 billion+ in incentives for smartphone and semiconductor makers

• Ease of doing business reforms and tax relaxations

• Infrastructure investment in tech clusters like Tamil Nadu, Noida, and Bengaluru

The results? Apple, Samsung, Xiaomi, Vivo, and many other smartphone brands are now assembling or manufacturing key devices in India, not just for local sale, but for global export.

 Apple’s India Strategy Paying Off

Apple has been leading the charge among premium smartphone brands. In 2023–24 alone:

• Over $5 billion worth of iPhones were exported from India

• Foxconn, Wistron, and Pegatron — Apple’s key suppliers — expanded their Indian operations

• Apple aims to shift up to 25% of its total production to India by 2025

For the first time ever, iPhones sold in New York or California are likely to be assembled in Chennai or Bengaluru.

Why China Is Falling Behind

While China isn’t going away anytime soon, it’s clear that the monopoly is breaking. Several factors are at play:

• Tight government regulations and surveillance

• Frequent worker protests at manufacturing hubs like Zhengzhou

• US pressure on companies to reduce Chinese dependency

• The rising popularity of the "China + 1" strategy, where companies seek alternatives like India, Vietnam, and Mexico

India’s Export Boom: The Data

• India’s smartphone exports crossed $15 billion in FY 2024–25

• USA, UAE, and the EU are now top buyers of Indian-made smartphones

• Nearly 33% of smartphone shipments to the USA are now from India

• India is on track to become the 2nd largest smartphone exporter in the world, after China

India’s smartphone manufacturing boom is not just about tech — it’s about jobs, GDP growth, and global relevance. Over 250,000 jobs have been created in electronics manufacturing alone, and the number is growing rapidly.

With continued reforms, infrastructure investments, and geopolitical tailwinds, India could soon challenge China’s supremacy in the electronics world.

Follow “The Bharat Brief” for more such updates on India’s rise in the global order!