Export of smartphones assembled in India has grown by about 700 percent in FY25 compared to the previous year and now occupies a significant share in US smartphone imports. Photo: Madhu Kapparath
As Indian businesses try to manoeuvre a sudden imposition of US President Donald Trump’s tariffs close to the August 1 deadline, analysis shows that a substantial increase in exports has doubled India’s trade surplus with the US in the last seven years.
Indian exports to the US increased by 65 percent between FY19 and FY25, exceeding $85 billion for the first time. In comparison, imports grew by just about 29 percent to $46 billion in the same period. US imports to India had crossed $50 billion in FY23.
Consequently, India’s trade surplus with the US has more than doubled from $17.5 billion in 2019 to over $36 billion in 2024.
Though pharmaceuticals, textiles, gems and jewellery remain the major items of trade, export of smartphones assembled in India have grown by about 90 percent in FY25 compared to the previous year. Smartphones made up $11 billion of the $16 billion in total electrical machinery exports to the US in FY25.
For the US, Indian smartphones made up more than a tenth of all its smartphone imports by the end of 2024.
Meanwhile, imports of US mineral fuel and products to India have doubled to $14 billion in FY25 compared to seven years ago; those of gems and jewellery have dropped.
Overall, imports from the US account for just about 6 percent of total Indian imports. In comparison, US makes up 20 percent of all Indian exports in FY25.