India has recently cemented its place as one of the major hubs for smartphone exports. The country has grown as a manufacturing base, especially for companies moving away from China with the help of government and local assemblies. The manufactured devices are shipped out of the country via shipment from the Middle East trade routes. However, reports claim that the current war with Iran has significantly affected the shipment. Goods are being shipped through the Middle East, and the delay is creating uncertainty. The need for smartphones is still high, but the transport is slower and uncertain, creating uncertainty among exporters and businesses around the world. But there’s an exception, as Apple is reportedly safe from the ongoing shipment issues.
According to a report by NikkeiAsia, India exported mobile phones worth 11 billion dollars in the first half of the fiscal year, which started in April 2025. Moreover, the statistics indicate an increase of 55 per cent compared to the same period last year. The increase is attributed to the growing confidence among global brands and the continued improvement in the country’s supply chain.
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However, the analysts have indicated that the country is likely to witness a drop in mobile phone exports in the coming weeks. The main effect is likely to be felt in the mobile phones that use the UAE as an export route. They further added that the ones who are likely to feel the pinch are the smaller players and the mid-sized ones. As these are the companies that largely depend on the Middle East trade route.
Large firms seem to be more prepared to deal with the situation. Especially Apple, for instance, has already taken measures to reduce its dependence on these centres. As the Cupertino tech giant has started exploring alternative routes, due to this, it has been able to limit the impact on its supply chain. The move has also put the firm at an advantage over other firms that are less likely to cope with the situation.
However, the impact of the export slowdown is likely to be substantial, and the estimates indicate that exports are expected to decline by 22 to 25 per cent in the near term if the situation is not rectified. This will impact the current export drive in India, albeit temporarily.
Industry experts have also clarified that the current war-like situation is affecting logistics rather than demand, and to respond to the situation, companies are opting to use more direct routes and avoiding areas with high risks.