As Indian exports take the hit from US-imposed tariffs of 50% from today, the segment of smartphones stands exempted from the tariffs. India’s mobile phone sector has registered a landmark year this year, with its exports to the US crossing the $10 billion mark, and more importantly, the sector sustains tariff-free trade despite the additional . The accomplishment serves to reflect India’s increasing strength as a global electronics hub, backed by policy moves that are strategic, high-gear supply-chain realignment, and shifting dynamics in US-China trade.
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Export Boom and Tariff Exemption
India’s exports of smartphones to America have risen exponentially, with the country providing almost 44% of all American imports of smartphones during the second quarter of 2025, as compared to only 13% in the same period of the previous year. This achievement was fuelled by Apple’s dramatic shift to scale up the manufacturing of iPhones in India, in addition to the triumph of India’s Production Linked Incentive (PLI) scheme and ‘Make in India’ initiative. India has shipped an estimated 40 million units in the first half of 2025, with the overall smartphone exports crossing $10 billion for the year, reinforcing India as the leading supplier to the US market.
The US government’s move to grant an Indian electronics tariff exemption, including high-end smartphones, has proved to be a game-changer. The majority of Indian merchandise is subject to over tariffs of 25-50%, but Indian-assembled smartphones are exempt from duties under a US provision’s Section 232 exemption. This competitive edge has allowed Indian exporters to price lower compared to competing suppliers in China and Vietnam, whose smartphones now carry a 25-30% duty in the US.
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Industry Drivers and Global Impact
Apple has been instrumental in the shift, with Indian-made iPhones accounting for more than 70% of total iPhone exports to the US over the past few months. Samsung, Motorola, Vivo, and Xiaomi have also stepped up their operations in India, supported by fast-growing local component sourcing and assembly-line growth. India’s electronics manufacturing units have swelled from two in 2015 to perhaps 300 today, cutting drastically on import dependence and propelling export-led growth.
Policy support from the government remains the fulcrum of advancement. The PLI scheme has encouraged domestic and international brands alike to invest in new plants, technological advancements, and the up-skilling of their workforce. Analysts point out that India’s electronics exports in total, currently almost $24 billion, are set for further growth if the US continues tariff-free status for smartphones.
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Rough Days Ahead?
Though the industry has a 90-day window of exemption, future reviews in Washington may shape the trade environment. For the time being, India’s smartphone sector is at an all-time high, with tariff-free access propelling exports, luring high-profile investments, and cementing its position as a global manufacturing powerhouse.
