India Now Meets 40% Of US Smartphone Demand Once Dominated By China: Report

New Delhi, Apr 18 (KNN) India has emerged as a significant supplier of smartphones to the United States, meeting around 40 per cent of the demand previously catered to by China, according to a recent McKinsey & Company report. 

The shift reflects broader changes in global trade patterns as companies and economies diversify sourcing bases.

The report noted that the United States has actively reduced dependence on Chinese imports, replacing nearly two-thirds of goods earlier sourced from China, valued at over USD 80 billion, ANI reported. 

India and ASEAN economies have played a major role in filling this gap.

The report highlighted that India has sharply increased smartphone exports to the US, despite the long geographical distance of nearly 13,000 kilometres, signalling its growing integration into global electronics manufacturing networks.

ASEAN and Brazil Also Gain Ground

Alongside India, ASEAN economies have replaced about two-thirds of US laptop imports previously sourced from China. The region has strengthened its position as a manufacturing hub by importing inputs from China and exporting finished goods to the US.

Brazil, meanwhile, has expanded commodity exports to China, partly replacing US-linked supply chains, reflecting wider global realignments in trade flows.

Global Trade Remains Resilient

Despite concerns of a slowdown, the report stated that global trade remained strong in 2025. Both US imports and Chinese exports reached record levels, while global trade growth outpaced global economic growth.

India’s Export Trends

Among emerging economies, India stood out for expanding trade across multiple regions. However, the report noted that while overall exports remained largely stable, smartphones were a key exception driving export growth.

Shift Driven by Geopolitical Realignment

The report attributed these changes to shifting geopolitical priorities and efforts by major economies to reduce exposure to distant or sensitive trade partners. Emerging economies such as India are increasingly integrating into diversified supply chains across sectors.

(KNN Bureau)