India surpasses China in smartphone exports, boosted by PLI scheme and US tariffs

The US-China trade war has given a major boost to Indian smartphone exports. Companies like Motorola and Samsung have shifted their production from China to India.

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Indian Smartphone Exports 2025

India is benefiting from the US-China trade war, particularly from policies initiated by former US President Donald Trump. His administration imposed tariffs on Chinese goods, prompting global manufacturers, especially in the smartphone sector, to shift production from China. India emerged as a preferred alternative, offering favorable tariffs and strong government support through initiatives like the Production Linked Incentive (PLI) scheme.

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Trump tariffs impact in India

This shift has significantly boosted smartphone exports from India, particularly in the Android segment. Motorola, once heavily reliant on Chinese production, exported 1.6 million smartphones from India between January and May 2025, with 99% shipped to the US, according to Canalys data. This is a sharp increase from the 1 million units exported during the same period in 2024, largely attributed to Motorola's manufacturing partnership with Dixon Technologies. Indian-made mobiles face a 26% tariff compared to the 55% tariff on Chinese mobile imports to the US.

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US-China trade war

This makes them more competitive. Samsung, another major player, has also increased exports from India. Between January and May 2025, Samsung shipped 945,000 smartphones to the US, up from 645,000 units in the same period last year. While Samsung has traditionally relied on its factories in Vietnam, ongoing tariff negotiations between the US and Vietnam have prompted the company to diversify production. Vietnam currently faces a 46% tariff, temporarily suspended for 90 days, but uncertainty remains, pushing Samsung to strengthen its Indian base.

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PLI scheme's success

The PLI scheme has been a game-changer, helping manufacturers like Foxconn, Tata Electronics, Dixon, Samsung, and Motorola scale production for the US and other global markets. Canalys reports that India exported 35 million smartphones between January and May 2025, with Apple leading the way with 20.5 million units, 80% destined for the US market. This shows steady growth across brands, compared to 60 million smartphone exports in 2024, where Apple held a 50% share.

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Samsung exports from India

Even Chinese brands are now utilizing India's manufacturing ecosystem. Vivo, one of India's top-selling smartphone brands, started small-scale exports from India in 2024 with 350,000 units. By May 2025, the company had already shipped 250,000 phones to countries like Thailand and Malaysia. With new manufacturing partnerships and expanded facilities, Vivo is expected to significantly increase its export volumes in the coming months.