New Delhi: India’s largest export to the United States has shifted from diamonds to smartphones, with exports reaching $2 billion in the June quarter, compared to $1.44 billion for diamonds. By the final quarter of FY24, smartphone exports surged to $2.02 billion, while diamond exports declined to $1.24 billion. This increase in smartphone exports is largely credited to India’s production-linked incentive (PLI) scheme.
In recent developments, smartphones have outperformed diamonds as India’s primary export to the US, according to a report from Business Insider. In the December quarter of FY24, smartphone exports totaled $1.42 billion, surpassing diamond exports, which were at $1.3 billion. By the end of FY24, smartphone exports increased by 43% quarter-on-quarter, while diamond exports decreased by 4.6%. Interestingly, in the September quarter of FY24, smartphones were ranked as the fourth-largest export from India to the US.
The growth in smartphone exports can be attributed to the implementation of India’s production-linked incentive (PLI) scheme. Prior to this initiative, smartphone exports amounted to $1.6 billion in global shipments during FY19. By FY23, Apple had exported over $5 billion worth of iPhones from India, significantly contributing to the country’s total smartphone exports of $11.1 billion. In FY24, iPhone exports soared to $10 billion, making up 66% of total smartphone exports, which reached $15.6 billion. During this timeframe, smartphone exports to the US skyrocketed by 158% to $5.56 billion, solidifying their position as India’s second-largest export to the US, following diamonds.
