India is rapidly emerging as a major player in global smartphone manufacturing, with a projected 20% share of worldwide output by 2025, according to Counterpoint Research. This growth comes despite a projected 1% global decline in smartphone production, largely driven by weakening demand and trade pressures. India, however, is bucking the trend with double-digit growth, fuelled by major investments from Apple and Samsung and supported by proactive government policies.
India Emerges as Key Manufacturing Hub Amid Apple-Samsung Expansion and China Shift
In 2024, Samsung surpassed Apple in smartphone units assembled in India, thanks to its massive factory in Noida and dominance in mid-range models. Meanwhile, Apple significantly scaled its India operations, now producing over 14% of all iPhones locally—up from just 1% in 2019. Both companies are diversifying their supply chains amid rising tariffs and geopolitical tensions, especially with China, which currently accounts for over 90% of global smartphone production. As China’s dominance faces mounting pressure, India and Vietnam have emerged as preferred alternatives, with India gaining a long-term edge due to its scale, skilled workforce, and policy support.
The Indian government has played a key role by introducing initiatives like the Production-Linked Incentive (PLI) and the Electronics Components Manufacturing Scheme (ECMS) to reduce import dependence and strengthen local component supply chains. India’s electronics manufacturing ecosystem is not only growing in volume but also maturing in complexity and quality, with local EMS companies expanding capabilities in high-value assembly and testing.
2025: A Defining Year for India’s Smartphone Manufacturing Ambitions
Though experts caution that matching China’s scale will take time, 2025 is poised to be a milestone year for India, solidifying its status as a key global smartphone manufacturing hub, led by the aggressive expansions of Apple and Samsung.
Summary:
India is set to capture 20% of global smartphone production by 2025, driven by Apple and Samsung’s expanding operations. Amid China’s declining dominance, India’s policy support, skilled workforce, and growing electronics ecosystem position it as a top manufacturing hub. Government schemes further strengthen its supply chain and assembly capabilities.
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