Apple Inc.’s iPhone exports from India jumped by a third in the six months through September, underscoring its push to expand manufacturing in the country and reduce dependence on China.

Apple exported nearly $6 billion of India-made iPhones, an increase of a third in value terms from a year earlier. That puts annual exports on track to surpass the about $10 billion of fiscal 2024. Foxconn’s local unit, based on the outskirts of Chennai, is the top supplier in India and accounts for half of the country’s iPhone exports. The dollar figure refers to the devices’ estimated factory gate value, not the retail price.

Apple is expanding its manufacturing network in India at a rapid clip, taking advantage of local subsidies, a skilled workforce and advances in the country’s technological capabilities.

IPhones account for the bulk of India’s smartphone exports and helped the product category become the top export to the US at $2.88 billion in the first five months of this fiscal year, according to federal trade ministry data. Five years ago, before Apple expanded manufacturing in India, the country’s annual smartphone exports to the US were a meager $5.2 million.

The subsidies by Prime Minister Narendra Modi’s administration helped Apple assemble its pricey iPhone 16 Pro and Pro Max models, with better cameras and titanium bodies, in India this year. It’s also seeking to open new retail stores, including in the southern tech hub of Bangalore and western city of Pune.

In context, however, Apple still only accounts for 7% of India’s smartphone market which is currently dominated by Chinese brands such as Xiaomi, Oppo and Vivo. For more, read the full Bloomberg report.