How Local Manufacturing is Powering Growth and Exports: Made in India Smartphones
India’s smartphone manufacturing sector is undergoing a profound transformation—driven by government policy, global supply chain shifts, and a surge in local value. From assembly to exports, the “Make in India” initiative is delivering impact not just domestically but globally.
Manufacturing Goes Mainstream in India
According to the Economic Survey 2024‑25, India produced roughly 330 million mobile phones in FY24, with 99 percent of them manufactured domestically—a stark shift from import reliance just a few years ago .
At the beginning of the decade, India met only 25 percent of its demand with local production. By 2023–24, that figure rose to 97 percent .
Growth & Export Boom of Made in India Smartphones
1. In FY24, Made in India smartphones shipments rose 6 percent year-on-year, largely because of robust exports .
2. Apple and Samsung together accounted for 94 percent of India’s smartphone exports in 2024, leveraging local manufacturing to serve global markets .
3. Exports reached $15.6 billion in FY24 and climbed to $24.1 billion in FY25, becoming one of India’s top export categories ahead of diamonds and petroleum products .
Market Leaders & Momentum of Made in India Smartphones
1. Samsung retained the top domestic manufacturer spot in 2024 with 7 percent YoY growth, boosted by a 13 percent rise in exports.official site of Samsung: https://www.samsung.com/in/
2. Vivo grew at 14 percent YoY, capturing a 14 percent market share due to its widespread offlinepresence. Official site of Vivo: https://www.vivo.com/in
3. Tata Electronics (formerly Wistron) delivered 107 percent YoY growth, largely benefiting from iPhone 15 and 16 manufacturing partnerships .
4. Foxconn Hon Hai saw 19 percent volume growth, aiding Apple’s shift to India-based production .
5. Dixon Technologies emerged as India’s leading contract manufacturer—handling phones, feature phones, and supporting multiple brands like Motorola and Xiaomi.
Ecosystem & Component Push
A ₹23,000 crore (US $3 billion) incentives scheme aims to boost local production of crucial smartphone components—PCBs, camera modules, displays, lithium-ion cell casings—and increase domestic value addition to 30–40 percent over five years.
The government’s PLI and PMP initiatives have incentivized both global and Indian firms to invest in electronics and mobile manufacturing.
Regional hubs like the Sri Venkateswara Manufacturing Hub in Tirupati host local brands like Karbonn and Celkon, creating clusters that supplement national capacity.
Global Strategy of Made in India Smartphones: Export & Diversify
U.S. imports of Indian‑assembled smartphones jumped by 240 percent year-on-year in Q2 2025, making India the largest producer for the U.S. market—while China’s share dropped from 61 percent to 25 percent .
Apple now sources 71 percent of its U.S.-bound iPhones from India, up from 31 percent a year earlier, indicating a sustained shift in its “China Plus One” strategy.
New facilities like the Tata Electronics plant in Hosur and a $2.6 billion Foxconn facility in Bengaluru are further scaling local iPhone production, targeting full production of newer models in coming years.
Why This Trend Matters
1. Pricing & Availability
Local manufacturing enables competitive pricing by cutting logistics and import duties—making smartphones more affordable and accessible across India.
2. Supply Chain Resilience
Diversifying production away from China boosts India’s appeal as a stable, cost-efficient alternative amid global trade tensions.
3. Job Creation & Economic Value
Large-scale electronics manufacturing—supported by PLI incentives—is creating jobs across the value chain, from factories to component supply lines.
4. National Branding & Export Leadership
Smartphones have overtaken traditional exports like diamonds and petroleum products. India is now the second-largest smartphone exporter globally and a central player in global electronics trade .
Final Thoughts
India’s shift toward becoming a smartphone manufacturing powerhouse reflects strategic policymaking, private investment, and global realignment of supply chains. Leading brands like Samsung, Apple (via Tata and Foxconn), Vivo, and Dixon are anchoring India’s export growth. With strong backing from the government’s Make in India, PLI, and PMP initiatives, this trend is poised for sustained growth—and competitive advantage—for both domestic consumers and the global market.
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