India's Smartphone Exports To US Falling: Think Tank

In FY2025, the United States continued to be India's primary smartphone market, importing USD 10.6 billion worth of devices. (File)

New Delhi:

According to the Global Trade Research Initiative (GTRI) on Monday, India's smartphone exports to its largest market, the United States, experienced a substantial decline of 58 percent, dropping from USD 2.29 billion in May to USD 964.8 million in August.

The think tank described this development as concerning and unexpected, particularly given that smartphones face no tariffs.

"This situation requires immediate investigation to determine the underlying factors driving this significant decline," the GTRI stated.

Smartphone exports, which represent India's largest export category to the US, showed a consistent monthly decrease, falling 58 percent from USD 2.29 billion in May 2025 to USD 964.8 million in August.

The export values were USD 2 billion in June and further decreased to USD 1.52 billion in July.

During FY2025, the US remained India's leading smartphone market, accounting for USD 10.6 billion in imports (44 percent of India's global smartphone exports of USD 24.1 billion), with the EU following at USD 7.1 billion (29.5 percent).

GTRI also noted that products exempt from tariffs, comprising 28.5 percent of India's August exports, showed the most dramatic contraction at 41.9 percent, decreasing from USD 3.37 billion in May to USD 1.96 billion in August.

The pharmaceutical sector also experienced weakness, with exports declining by 13.3 percent from USD 745 million in May to USD 646.6 million in August.

GTRI Founder Ajay Srivastava pointed out that Indian goods subject to high US tariffs are likewise experiencing export declines.

Jewelry exports decreased by 9.1 percent to USD 228.2 million in August, with diamond-studded gold jewelry and cut and polished diamonds also registering negative growth.

Seafood exports saw a dramatic 43.8 percent reduction, falling from USD 289.7 million in May to USD 162.7 million in August.

Textile, garment, and made-up exports to the US declined by 9.3 percent, dropping from USD 943.7 million in May 2025 to USD 855.5 million in August 2025.

Similarly, chemical exports decreased by 15.9 percent to USD 451.9 million between May and August 2025.

"The August data only partially reflects the impact of higher tariffs—India paid 10 percent tariffs until August 6, 25 percent until August 27, and 50 percent only after August 28. September will be the first complete month where the declines in textiles, gems and jewelry, shrimp, chemicals, and solar panels could intensify further," Srivastava explained.

He noted that India's exports to the US have decreased for three consecutive months—an anticipated result of steep tariff increases.

"More concerning is the unexpected decline in tariff-free exports such as smartphones and pharmaceuticals, which threatens to undermine India's flagship PLI success story. Policymakers and industry stakeholders must urgently investigate the causes and implement measures before this downward trend worsens," he added. PTI RR HVA