India’s smartphone sector: export success but persistent dependence on Chinese imports

India’s smartphone industry is an export success story, but it also reflects persistent themes and tensions in 2020s international trade. The relationship with China is complex: amid US tariffs, India has become a “connector economy” in this sector – supplying American consumers, but dependent on inputs from China and elsewhere.

The US truly became the dominant destination for Indian-made Apple iPhones and Samsung devices from the start of 2025; American-bound shipments hit $2 billion in June of this year. China was supplying about 40% of US smartphone imports just two years ago; amid India’s rise, that proportion has sunk to about 10%.

Meanwhile, India’s smartphone factories are particularly dependent on Chinese-made memory chips and processors from the USA.