India has officially become the second-largest mobile phone manufacturer in the world, surpassing Vietnam and trailing only behind China. This milestone marks a historic moment in India's journey to becoming a global electronics hub, driven by favorable policies, a skilled workforce, and massive domestic demand.
In 2014, India imported over 80% of its mobile phones. Domestic production was minimal, with only two functional mobile assembly plants. The balance has shifted drastically in a decade:
Over 200 manufacturing units now operational
Nearly 99% of phones sold in India are now made in India
Apple, Samsung, Xiaomi, Oppo, Vivo, and Lava are manufacturing at scale locally
The Make in India Push
Launched in 2014, the Make in India initiative laid the foundation for this transformation. The government's goal was to reduce import dependency, generate jobs, and turn India into a manufacturing powerhouse. Mobile manufacturing was a major focus.
The PLI scheme introduced in 2020 has been a game-changer. It offers financial incentives to companies that scale up production and meet investment thresholds.
Impact:
Attracted top-tier players like Apple and Samsung
Helped domestic players like Lava and Micromax restart operations
Boosted export-oriented production
With over 1.2 billion mobile subscribers and a booming smartphone penetration rate, India offers one of the largest consumer bases globally.
Rising income levels = higher smartphone adoption
Growth of digital payments and OTT consumption drives demand
Government digital initiatives like Aadhaar, UPI, and DigiLocker depend on smartphones
Global geopolitical tensions, especially with China, have led multinational companies to diversify supply chains. India has emerged as a prime alternative.
Apple now manufactures iPhones worth billions in India
India is now expected to account for 25% of all iPhones produced globally by 2026
Apple, once a negligible manufacturer in India, now produces flagship models including the iPhone 14 and 15 locally. Partners like Foxconn, Wistron (now acquired by Tata Group), and Pegatron have expanded their Indian operations significantly.
Samsung operates the world’s largest mobile phone manufacturing plant in Noida. Xiaomi and Vivo continue to dominate volumes in the affordable and mid-tier segments, with aggressive localization.
Mobile exports: $12 billion+ in FY24
Top export destinations: United States, UAE, Netherlands
India’s smartphone export growth YoY: Over 40% increase
India’s shift from import dependence to export leadership is driving trade balance improvements and foreign exchange earnings.
India is also actively pursuing trade pacts and bilateral agreements to open up new markets for mobile exports, especially in Europe, Africa, and Southeast Asia.
While assembly has improved, over 60% of components are still imported—especially semiconductors, display panels, and batteries. This limits the actual value addition.
Reliable logistics, warehousing, and power infrastructure remain inconsistent across states. High turnaround times and port delays hinder global competitiveness.
India still lacks original product development. Most devices are assembled from global designs. To move up the value chain, India needs to invest more in design-led manufacturing and build its own intellectual property (IP) base.
Special Electronics Manufacturing Zones (EMCs) are being built in Tamil Nadu, Karnataka, and Uttar Pradesh to address infrastructure and ecosystem bottlenecks.
India is investing over $10 billion under the Semicon India Program to build domestic chip-making capabilities. Major projects are underway:
Micron’s chip assembly unit in Gujarat
Vedanta-Foxconn’s semiconductor project
Training programs are being rolled out under Skill India and the Electronics Sector Skills Council to prepare 1 million+ workers for mobile and electronics manufacturing roles.
India aims to scale its electronics manufacturing to $300 billion by 2030, with mobile phones contributing over $120 billion.
Domestic brands like Lava, Karbonn, and Micromax are slowly regaining ground, especially with support from government procurement and patriotism-driven buying behavior.
Future plans include:
Global expansion of Indian smartphone brands
R&D labs for original design and software innovation
India becoming a hub for 6G and AI-integrated devices
From being an importer of mobile phones to becoming the second-largest mobile manufacturer globally, India’s journey is nothing short of transformational. It’s a story of policy alignment, global opportunity, and a domestic market that fuels production like few others can.
But the next leap will come from building deep manufacturing capabilities—not just assembling devices, but owning the design, the chips, and the software. India’s mobile revolution is just getting started, and the world is watching.