India ramps up Android phone shipments to US & Africa, led by PLI push

Business Standard

5 hours ago

India is fast becoming a global hub for smartphone exports, as companies like Motorola and Samsung ramp up shipments to the US. This shift is being driven by evolving global trade dynamics and the Indian government's push to boost local manufacturing, according to The Economic Times.
Motorola, owned by Lenovo, exported 1.6 million Android smartphones from India in the first five months of 2025 — a sharp jump from one million units in all of 2024. Market research firm Canalys reports that 99 per cent of these phones were shipped to the United States, the news report said.
Previously, Motorola primarily relied on China to supply the US market. But after the US imposed a 55 per cent tariff on Chinese imports in April, a shift began. Smartphones made in India face a significantly lower 26 per cent tariff. Though smartphones are currently exempt, the future of US policy remains uncertain. Motorola's contract manufacturer in India, Dixon Technologies, is expanding its capacity by 50 per cent to meet rising demand.
Samsung follows with steady growth
Samsung, another key exporter, shipped 945,000 smartphones from India to the US between January and May 2025, up from 645,000 units during the same period last year. The US currently levies a 46 per cent tariff on smartphones from Vietnam — Samsung's primary export base — though these tariffs are under a temporary 90-day pause during trade negotiations.
Government incentives drive export boom
India's export success is also being powered by the Production-Linked Incentive (PLI) scheme, which offers financial support to manufacturers increasing domestic output and exports. Beneficiaries include Dixon, Samsung, and Apple's partners Foxconn and Tata Electronics.
Between January and May 2025, India exported over 35 million smartphones, as per Canalys. Apple alone accounted for 20.5 million units, with 80 per cent shipped to the US. In 2024, India exported about 60 million smartphones, with Apple contributing half. Samsung and Motorola were also among the top exporters, the news report said.
Transsion, Vivo expand global reach
Other players are also expanding exports, riding on the same contract manufacturing momentum. Transsion's brands — Infinix, Tecno, and iTel — have seen growing shipments. After Dixon acquired a majority stake in Transsion's manufacturing arm in May 2024, it began targeting African markets where Transsion commands over 80 per cent market share.
Dixon is also exploring exports of Google Pixel phones, which it manufactures in India. The brand has reportedly exported 350,000 handsets in the year 2024 and has already shipped 250,000 units to Malaysia and Thailand in the first five months of 2025. After moving into a larger facility under a manufacturing agreement with Dixon, Vivo is expected to scale up exports further, The Economic Times said.
Chinese brands use India as an export base
Chinese smartphone and electronics firms are increasingly using their Indian manufacturing units to export to markets like West Asia, Africa, and the US — regions that were earlier served mainly by China and Vietnam, The Economic Times had reported. The trend highlights India's growing role in global supply chains.
Regulatory filings reflect the results. In FY24, Oppo Mobiles India recorded export revenues of ₹272 crore, while Realme Mobile Telecommunications (India) reported ₹114 crore, according to data from the Registrar of Companies.
While many Chinese brands are not direct beneficiaries of the PLI scheme, their contract manufacturers — such as Dixon — are using the incentive structure to support export growth. Industry executives expect more brands to follow as India's manufacturing ecosystem matures.
India's mobile phone exports jumped over 74 per cent in May 2025, touching $3.09 billion — the second-highest monthly total ever, just behind March's $3.1 billion. The surge was driven largely by Apple's increased shipments to the US. In April and May alone, exports crossed $5.5 billion, up 41 per cent year-on-year. Since October 2024, monthly exports have consistently exceeded $2 billion.