India’s manufacturing capabilities have gained rising consideration in discussions and information relating to US President Donald Trump’s excessive import tariffs.
Whereas the highlight has intensified on the nation, the notion of India as a sudden, ‘darkish horse’ entrant within the smartphone manufacturing enviornment is much from correct. India’s journey in electronics manufacturing via contract manufacturing, joint ventures, and self-established vegetation goes again practically a decade. Apart from, if one takes the identify of any main smartphone maker, they may probably discover an meeting plant in India.
Final month, it was reported that smartphones grew to become India’s largest particular person export commodity by worth for the primary time, reaching $18.31 billion.
Apart from international demand, a lot of India’s progress may be attributed to the federal government’s production-linked incentive schemes. These schemes supply 4%-6% money incentives primarily based on particular targets for firms throughout 14 manufacturing sectors.
Numbers from each tech giants that make these smartphones and contract producers who assist assemble them point out the identical. The mixture of the success of the PLI scheme and the upcoming tariffs from the US authorities contributes to strengthening India’s smartphone manufacturing trade.
‘Apple Produces One in 5 iPhones in India’
Notably, Apple, the world’s largest smartphone producer and the largest firm by market cap, has actively sought to maneuver its iPhone meeting from China to India to counter the anticipated tariffs.
To start with, Apple itself has reworked India right into a key meeting hub for the iPhone via contract manufacturing with Foxconn and Tata Electronics (which acquired Wistron and a majority share in Pegatron) to arrange manufacturing services nationwide.
Just lately, Tata Electronics began manufacturing in its manufacturing unit in Hosur, Tamil Nadu, which produces older iPhone fashions, whereas Foxconn’s facility in Bengaluru has commenced manufacturing the iPhone 16 and the 16e Sequence. Their facility in Sriperumbudur additionally assembles the iPhone 16 Professional and the 16 Professional Max fashions.
Apple assembled iPhones value $22 billion within the 12 months that led to March, as reported by Bloomberg. This represents a 60% enhance from the earlier 12 months, and now, Apple produces one in 5 iPhones in India, in accordance with the sources cited by Bloomberg.
Within the firm’s Q2 2025 earnings name, CEO Tim Cook dinner mentioned that for the June quarter, nearly all of the iPhones bought in america can have India because the nation of their origin.
Apart from, Apple exported iPhones value ₹1.5 trillion from India in 2024-25, doubling the corporate’s dedicated goal underneath the PLI scheme.
Samsung and Google to Transfer Away from Vietnam?
Together with Apple, Samsung is one other distinguished identify reaping the advantages of India’s manufacturing ecosystem. Analysis from Counterpoint additionally acknowledged that Apple and Samsung alone accounted for 94% of India’s smartphone exports.
Samsung began manufacturing cellphones in India in 2007, and the corporate claims it’s the “solely model that’s really made in India”. In 2018, the corporate unveiled its plant in Noida, which is touted because the “world’s largest cell phone manufacturing unit”.
The Noida plant can be mentioned to fabricate the corporate’s newest, flagship S25 sequence of smartphones. This plant has the capability to supply 120 million items a 12 months. The corporate has additionally outsourced the manufacturing of particular smartphone variants to contract producers comparable to Dixon Applied sciences.
Just lately, MoneyControl reported that Samsung is planning to shift a portion of its smartphone and electronics manufacturing from Vietnam, its main vacation spot. The corporate reportedly discusses manufacturing changes with extra contract producers, favouring India.
That is probably in lieu of upper import tariffs by the US on Vietnam (49%) in comparison with India (26%).
Final 12 months, Google introduced that it had began manufacturing the Pixel 8 smartphone in Tamil Nadu, India, via Wowtek Expertise, a subsidiary of Bharat FIH, additionally part of Foxconn.
Nonetheless, in a growth just like Samsung and Apple, The Financial Occasions lately reported that Google’s mother or father firm, Alphabet, has begun discussions with contract producers Dixon Applied sciences and Foxconn to maneuver a portion of Pixel smartphone manufacturing from Vietnam to India.
Apart from Apple, Samsung, and Google, Chinese language giants like Xiaomi, subsidiaries of BBK Electronics (Oppo, Realme, OnePlus, Vivo), and Motorola have substantial manufacturing capabilities in India. Final December, Dixon Applied sciences and Vivo entered a three way partnership, with the previous having a majority stake. The event occurred after the corporate acknowledged its ambitions to double manufacturing within the nation.
Equally, Pete Lau, founder and CEO of OnePlus, advised Moneycontrol that the corporate can be doubling its native manufacturing in India with new partnerships. At present, OnePlus’ smartphones are being manufactured by Oppo India, of their Noida plant, which is claimed to fabricate three smartphones per second.
Contract Producers are Making Massive Cash
A big beneficiary of India’s smartphone manufacturing arm is the contract producers who earn groundbreaking income and cash-based incentives from the PLI schemes.
Analysis from Counterpoint acknowledged that Tata Electronics was the fastest-growing producer in 2024, registered 107% year-over-year progress, because of the massive volumes of the iPhone 15 and 16 sequence.
Earlier this 12 months, Dixon Applied sciences practically doubled its income for the 12 months ending March 2025, and Foxconn additionally doubled its income to $20 billion in FY 2024- 25.
These figures will definitely proceed to rise additional, supplied that meeting strains are shifted to India.
Relating to the PLI scheme, Foxconn obtained ₹2,807 crore in incentive payouts over three monetary years, from 2022-23 to 2024-25. The corporate accounts for over 32% of the funds allotted for the incentives.
Conversely, Tata Electronics obtained ₹2,067.51 crore, Pegatron obtained ₹1,724,36 crore, and Padget Electronics acquired ₹596 crore. Foxconn, Tata Electronics, and Pegatron collectively obtained greater than 75% of the full disbursement.
Apart from, Foxconn and Dixon search to obtain extra subsidies underneath the PLI schemes from unallocated funds, as reported by Bloomberg. If the request goes via, Foxconn may obtain as a lot as ₹6 billion, and Dixon may obtain ₹1 billion.
With the emergence of quite a few generative AI instruments and software program purposes, the demand for smartphones as competent handheld gadgets is certain to rise. It is going to be intriguing to look at the trajectory of India’s progress on this context.
The put up India’s Smartphone Manufacturing Muscle is Now Stronger Than Ever appeared first on Analytics India Journal.
