India’s smartphone manufacturing ecosystem continues to gain global momentum, with ‘Made in India’ devices witnessing steady growth in 2025. According to a recent report by Counterpoint Research, smartphone production in the country grew 8% year-on-year, driven largely by a sharp 28% surge in exports.

This growth highlights India’s increasing importance as a global manufacturing hub, supported by government initiatives, expanding local capabilities, and rising demand from international markets.

Key Highlights

Smartphone manufacturing in India grew 8% YoY in 2025

Exports surged 28%, contributing nearly one-third of total output

Dixon Technologies led with 19% share and 89% YoY growth

Samsung maintained strong in-house production

Foxconn saw 40% YoY growth driven by exports

Government policies and PLI schemes played a crucial role

Rising costs and global uncertainties pose future challenges

@counterpointresearch

Growth Driven by Exports and Domestic Demand

Exports Take Center Stage

One of the most significant drivers behind India’s smartphone manufacturing growth is the rapid rise in exports. With a 28% increase year-on-year, exports now account for nearly one-third of all smartphones produced in the country.

This shift indicates that India is no longer just a domestic consumption market but is becoming a key exporter in the global electronics supply chain.

Domestic Market Still Important

While exports are leading the growth story, domestic demand—especially in the premium smartphone segment—continues to support manufacturing expansion. The trend of “premiumization” has helped brands maintain margins despite fluctuating costs.

EMS Players Leading the Manufacturing Boom

Dixon Technologies Dominates

Dixon Technologies emerged as the top Electronics Manufacturing Services (EMS) player in 2025, capturing a 19% market share and recording an impressive 89% year-on-year growth.

This surge was fueled by increased production orders from major smartphone brands such as Motorola, realme, and Xiaomi.

Rising Presence of Local Players

Another Indian EMS company, Bhagwati Products Limited, secured a spot among the top five with a 9% share. Its growth was supported by partnerships with brands like vivo, OPPO, and realme.

This signals a broader shift where domestic manufacturers are becoming key contributors to India’s electronics ecosystem.

Global Giants Strengthen Their Position

Samsung’s In-House Manufacturing

Samsung continued to leverage its in-house production capabilities, securing an 18% share with steady 4% growth. Its strong local manufacturing base remains a key advantage in India.

Foxconn’s Export-Led Growth

Foxconn, a major partner of Apple, recorded 40% growth, driven by a 48% surge in exports. This reflects India’s growing role in Apple’s global supply chain strategy.

Government Policies Powering the Ecosystem

India’s rise as a manufacturing hub has been strongly supported by proactive government initiatives, including:

Production Linked Incentive (PLI) schemes

Special Economic Zone (SEZ) reforms

Relaxed Foreign Direct Investment (FDI) policies

Electronics Component Manufacturing Scheme (ECMS)

These measures have encouraged both domestic and international players to expand their manufacturing footprint in India.

Challenges on the Horizon

Rising Component Costs

The global memory price surge remains a major concern. Increasing component costs could impact profit margins and slow down production growth.

Geopolitical Uncertainty

Global tensions and economic uncertainties, including conflicts affecting supply chains, may disrupt manufacturing and exports.

Slowing Smartphone Market

Despite manufacturing growth, the overall smartphone market is expected to face pressure, potentially affecting future demand.

The Need for Diversification

Industry experts suggest that EMS players must diversify beyond smartphones into categories like tablets, laptops, and other electronics to sustain growth.

Expanding the component ecosystem within India will also be crucial for increasing local value addition and reducing dependency on imports.

Outlook for 2026 and Beyond

Looking ahead, exports are expected to play an even more critical role in India’s growth story. Electronics have already become the third-largest export category in FY25 and are projected to rise further in the coming years.

Additionally, a potential second phase of the PLI scheme could further accelerate investment and innovation in the sector.

Benefits of India’s Manufacturing Growth

For the Economy

Increased exports and foreign exchange earnings

Job creation across manufacturing and supply chains

For Consumers

Better availability of devices

Competitive pricing due to local production

For Global Brands

Reduced dependency on single-country manufacturing

Access to a rapidly growing market

Conclusion

The 8% growth in ‘Made in India’ smartphones in 2025 marks a significant milestone in the country’s journey toward becoming a global manufacturing powerhouse. With exports surging 28% and domestic players gaining prominence, India is steadily strengthening its position in the global electronics ecosystem.

However, sustaining this growth will require strategic diversification, continued policy support, and resilience against global challenges. If these factors align, India’s smartphone manufacturing sector is well on track to achieve even greater heights in the coming years.

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