iPhone dethrones diesel as India’s leading export, raking in $23 billion

Apple’s iPhone has made a significant mark in the global market, achieving a milestone as India’s most valuable export item in 2025. An impressive $23 billion worth of iPhones were shipped from domestic factories, primarily to the United States. This surge in iPhone exports can be attributed to production incentives such as the Production-Linked Incentive (PLI) scheme and a strategic shift away from dependence on Chinese suppliers, according to experts in the industry.

For the first time, smartphones emerged as the leading export category in India, outstripping traditional exports like automotive diesel fuel. The overall smartphone export figures for 2025 totaled $30.13 billion, with Apple contributing a significant 76% to this figure. Apple’s five-year PLI scheme is set to come to a close in March 2026.

In India, Apple has established five iPhone assembly plants, with three under Tata Group entities and two under Foxconn. This manufacturing infrastructure is supported by a vast network of approximately 45 companies, including many Micro, Small, and Medium Enterprises (MSMEs) that supply components for both local and global operations.

Furthermore, India has solidified its position as the world’s second-largest mobile phone producer, with over 99% of smartphones sold domestically being manufactured within the country. This shift represents a significant step up the manufacturing value chain for India.

In addition to the remarkable surge in exports, Indian consumer preferences have also undergone a noticeable transformation. Apple’s iPhone 16 base variant clinched the top spot as the best-selling smartphone model in 2025, displacing the traditional dominance of budget-friendly devices, as highlighted in a report by Counterpoint Research.

In the latest earnings report, Apple disclosed record revenue figures across various regions for the December quarter. Apple CEO Tim Cook acknowledged the company’s expanding presence in emerging markets, including India, where robust double-digit revenue growth was observed.

Apple’s expansion in India shows no signs of slowing down, with plans to inaugurate a new store in Mumbai on February 26. Cook emphasized India’s status as the second-largest smartphone market globally and the fourth-largest PC market. Apple achieved quarterly revenue records across its product lines, comprising the iPhone, Mac, iPad, and services.

Expressing contentment with the company’s progress in India, Cook underlined Apple’s commitment to further expanding its presence in the region. The tech giant’s growing footprint in India underscores the immense potential and opportunities the country holds for Apple going forward.