India to Become Key Smartphone Manufacturing Hub as Companies Shift Out of China
India is rapidly rising as a global smartphone manufacturing hub as many companies look to shift operations out of China. According to a report by Counterpoint Research, India could contribute around 20% of the world’s smartphone production by 2025, a major leap that positions the country as a serious contender in the global supply chain.
The shift is being driven by a mix of geopolitical and economic factors. Trade tariffs on Chinese goods and China’s slowing economic momentum have prompted smartphone brands and component suppliers to diversify their production bases. “Tariffs are affecting the entire ecosystem, forcing brands to look for alternatives,” said Ivan Lam, Senior Analyst at Counterpoint.
India has become a key beneficiary of this realignment. Global giants like Apple and Samsung are increasing their production capacity in India to cater to global markets. This growing export base is helping India climb the ranks of global electronics manufacturing. “India’s capabilities have grown significantly in the last decade,” said Prachir Singh of Counterpoint. “Investments from both domestic and international firms have prepared the ground for more complex and large-scale production.”
Government support is playing a crucial role. Initiatives like the Electronics Components Manufacturing Scheme (ECMS) offer financial incentives to companies investing in local component manufacturing. These efforts aim to deepen India’s electronics ecosystem and reduce dependence on imports.
While Vietnam also remains a popular destination due to its export-friendly policies, India’s scale, skilled workforce, and proactive government policies give it a competitive edge. Experts note that supply chain transitions take time and investment, but India is clearly gaining momentum. With continued support and sustained interest from top tech companies, India is well-positioned to become a global powerhouse in smartphone manufacturing.
Source: Moneycontrol
