India’s Smartphone Manufacturing Muscle is Now Stronger Than Ever
India’s manufacturing capabilities have gained increasing attention in discussions and news regarding US President Donald Trump’s high import tariffs. While the spotlight has intensified on the country, the notion of India as a sudden, ‘dark horse’ entrant in the smartphone manufacturing arena is far from accurate. India’s journey in electronics manufacturing through contract manufacturing, joint ventures, and self-established plants goes back nearly a decade. Besides, if one takes the name of any leading smartphone maker, they will likely find an assembly plant in India. Last month, it was reported that smartphones became India’s largest individual export commodity by value for the first time, reaching $18.31 billion. Besides global demand, much of India’s growth can be attributed to the government’s production-linked incentive schemes. These schemes offer 4%-6% cash incentives based on specific targets for companies across 14 manufacturing sectors. Numbers from both tech giants that make these smartphones and contract manufacturers who help assemble them indicate the same. The combination of the success of the PLI scheme and the impending tariffs from the US government contributes to strengthening India’s smartphone manufacturing industry. ‘Apple Produces One in Five iPhones in India’ Notably, Apple, the world’s largest smartphone manufacturer and the biggest company by market cap, has actively sought to move its iPhone assembly from China to India to counter the anticipated tariffs. To begin with, Apple itself has transformed India into a key assembly hub for the iPhone through contract manufacturing with Foxconn and Tata Electronics (which acquired Wistron and a majority share in Pegatron) to set up production facilities nationwide. Recently, Tata Electronics started production in its factory in Hosur, Tamil Nadu, which produces older iPhone models, while Foxconn’s facility in Bengaluru has commenced manufacturing the iPhone 16 and the 16e Series. Their facility in Sriperumbudur also assembles the iPhone 16 Pro and the 16 Pro Max models. Apple assembled iPhones worth $22 billion in the 12 months that ended in March, as reported by Bloomberg. This represents a 60% increase from the previous year, and now, Apple produces one in five iPhones in India, according to the sources cited by Bloomberg. In the company’s Q2 2025 earnings call, CEO Tim Cook said that for the June quarter, the majority of the iPhones sold in the United States will have India as the country of their origin. Besides, Apple exported iPhones worth ₹1.5 trillion from India in 2024-25, doubling the company’s committed target under the PLI scheme. Samsung and Google to Move Away from Vietnam? Along with Apple, Samsung is another prominent name reaping the benefits of India’s manufacturing ecosystem. Research from Counterpoint also stated that Apple and Samsung alone accounted for 94% of India’s smartphone exports. Samsung started manufacturing mobile phones in India in 2007, and the company claims it is the “only brand that is truly made in India”. In 2018, the company unveiled its plant in Noida, which is touted as the “world’s largest mobile phone factory”. The Noida plant is also said to manufacture the company’s latest, flagship S25 series of smartphones. This plant has the capacity to produce 120 million units a year. The company has also outsourced the manufacturing of specific smartphone variants to contract manufacturers such as Dixon Technologies. Recently, MoneyControl reported that Samsung is planning to shift a portion of its smartphone and electronics manufacturing from Vietnam, its primary destination. The company reportedly discusses production adjustments with more contract manufacturers, favouring India. This is likely in lieu of higher import tariffs by the US on Vietnam (49%) compared to India (26%). Last year, Google announced that it had started manufacturing the Pixel 8 smartphone in Tamil Nadu, India, through Wowtek Technology, a subsidiary of Bharat FIH, also a part of Foxconn. However, in a development similar to Samsung and Apple, The Economic Times recently reported that Google’s parent company, Alphabet, has begun discussions with contract manufacturers Dixon Technologies and Foxconn to move a portion of Pixel smartphone production from Vietnam to India. Besides Apple, Samsung, and Google, Chinese giants like Xiaomi, subsidiaries of BBK Electronics (Oppo, Realme, OnePlus, Vivo), and Motorola have substantial manufacturing capabilities in India. Last December, Dixon Technologies and Vivo entered a joint venture, with the former having a majority stake. The development occurred after the company stated its ambitions to double production in the country. Similarly, Pete Lau, founder and CEO of OnePlus, told Moneycontrol that the company is also doubling its local manufacturing in India with new partnerships. Currently, OnePlus’ smartphones are being manufactured by Oppo India, in their Noida plant, which is said to manufacture three smartphones per second. Contract Manufacturers are Making Big Money A significant beneficiary of India’s smartphone manufacturing arm is the contract manufacturers who earn groundbreaking revenue and cash-based incentives from the PLI schemes. Research from Counterpoint stated that Tata Electronics was the fastest-growing manufacturer in 2024, registered 107% year-over-year growth, thanks to the large volumes of the iPhone 15 and 16 series. Earlier this year, Dixon Technologies nearly doubled its revenue for the year ending March 2025, and Foxconn also doubled its revenue to $20 billion in FY 2024- 25. These figures will certainly continue to rise further, provided that assembly lines are shifted to India. Regarding the PLI scheme, Foxconn received ₹2,807 crore in incentive payouts over three financial years, from 2022-23 to 2024-25. The company accounts for over 32% of the funds allocated for the incentives. Conversely, Tata Electronics obtained ₹2,067.51 crore, Pegatron received ₹1,724,36 crore, and Padget Electronics acquired ₹596 crore. Foxconn, Tata Electronics, and Pegatron together received more than 75% of the total disbursement. Besides, Foxconn and Dixon seek to receive more subsidies under the PLI schemes from unallocated funds, as reported by Bloomberg. If the request goes through, Foxconn could receive as much as ₹6 billion, and Dixon could receive ₹1 billion. With the emergence of numerous generative AI tools and software applications, the demand for smartphones as competent handheld devices is bound to rise. It will be intriguing to observe the trajectory of India’s growth in this context.
Much of India’s growth can be attributed to the government’s production-linked incentive schemes.
Much of India’s growth can be attributed to the government's production-linked incentive schemes.
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Supreeth is an engineering graduate who is curious about the world of artificial intelligence and loves to write stories on how it is solving problems and shaping the future of humanity.