Smartphones Are Dethroning Oil In India!

When a consumer product surpasses oil and diamonds in exports from a country like India, it is no longer just an industrial success, but a strategic shift. The meteoric rise of smartphones as the top export item reflects a redeployment of the country’s economic priorities. This turning point marks the emergence of a manufacturing India connected to global value chains, with possible repercussions on the balance of international trade, technology flows, and ultimately on digital usage and crypto economy dynamics.

When Smartphones Take the Lead in India’s Foreign Trade

Facing growing economic influence from other BRICS members, India is reshuffling the cards within the emerging bloc by adopting a strategic stance which, as shown by its position on dedollarization , illustrates its desire to chart an autonomous path.

The fiscal year 2024–2025 marks a historic reversal in India’s export structure, with smartphones surpassing refined oil and diamonds for the first time, signaling a profound transformation of its production apparatus.

For the first time, smartphones have climbed to the top of the country’s exported products , overtaking hydrocarbons and precious stones. This evolution, described as a “major transformation” by the authorities, is based on verified and significant data:

• Smartphone exports: 24.14 billion dollars in 2024–2025, compared to 15.57 billion the previous year, a 55% increase;
• Refined petroleum products and cut diamonds, formerly the main sources of foreign currency, are now relegated to second place;
• The PLI (Production-Linked Incentive) program is at the heart of this success. It rewards companies producing locally, thereby strengthening the competitiveness of Indian smartphones in international markets;
• An increase in volumes: shipments of “Made in India” smartphones rose by 6% in one year, driven by demand in the premium and mid-range segments, both domestically and for export.

This spectacular surge is the result of a proactive and targeted industrial policy. The Indian government has leveraged geopolitical tensions to reposition its industry in strategic segments.

By actively supporting local production, especially in the electronics sector, India, an influential member of the BRICS bloc, has enhanced its attractiveness to major global groups while creating an industrial base capable of absorbing international demand.

This new direction is not only economic; it is also foundational for the country’s technological sovereignty.

An Industrial Strategy with Geopolitical and Technological Aims

Beyond the commercial dimension alone, this momentum fits into a global logic of strategic repositioning on the world stage.

By becoming a credible export hub in electronics, India aspires to establish itself as a serious alternative to China, whose dominance over the electronic components value chain is beginning to provoke geopolitical reluctance, notably from the United States and their allies.

The PLI does not simply stimulate production. It also enables India to reposition itself as a major technology hub in the Asia-Pacific region. The PLI has enhanced India’s attractiveness on the global electronics market.

This positioning has significant potential implications for the global digital ecosystem. A robust industrial infrastructure can serve as a foundation for developing other strategic sectors, including blockchain and crypto technologies.

If India manages to master the smart device production chain, it could eventually develop interconnected local Web3 ecosystems, or even propose its own technical standards. The rise of Indian smartphones could therefore, in the medium term, stimulate the adoption of decentralized technologies, relying on an expanded user base and national technological solutions.