India's Smartphone Export Dynamics Shift: Netherlands Surpasses UAE

In a notable shift within the global market for Indian-manufactured smartphones, the Netherlands has overtaken the United Arab Emirates (UAE) to become the second-largest export destination. This change in market dynamics was observed from April to August this year, with data from the commerce ministry indicating that smartphone exports to the Netherlands soared by 92% to $833 million, while exports to the UAE saw a 25% decline to $777 million during the same period.

Historically, the UAE held the position as the second-largest market for India's smartphone exports until the last fiscal year, with exports amounting to $2.57 billion in 2023-24. Meanwhile, the Netherlands witnessed an 11% increase in its import of Indian smartphones in the same fiscal year, reaching $1.18 billion.

This year, the UAE is the only country among the top 10 export markets where smartphone shipments have decreased. Conversely, significant growth was observed in other markets, with Japan and Mexico leading the surge at 180% and 153% increases respectively, albeit from lower bases with export values at $129 million and $125 million.

The United States continues to dominate as the largest market for Indian smartphones, accounting for 38% of the total exports, which amounted to $7.5 billion from April to August. Exports to the US alone grew by 51% year-on-year to $2.8 billion.

Other notable growth markets during this period include Austria, with an 89% increase in exports amounting to $421 million, and Italy, where exports grew by 60% to $449 million.

The top 10 export markets for Indian smartphones now include six European countries, reflecting a strong European demand. Collectively, these markets account for 87% of India's smartphone exports during the first five months of the financial year, which also saw a 34% overall growth in smartphone exports.

This shift highlights changing consumer preferences and market strategies, with India's smartphone industry adapting to new opportunities in diverse global markets.