India poised to produce 1 in 5 smartphones globally by 2025 as firms shift away from China
New Delhi: India is rapidly emerging as a global hub for smartphone manufacturing, with the country projected to account for nearly 20% of global smartphone production by 2025, according to a report by Counterpoint Research, as reported by Moneycontrol.
The shift is being fuelled by a combination of factors, including rising tariffs on Chinese imports and a slowdown in China’s economic growth.
“Tariffs have impacted the entire smartphone industry—from suppliers and importers to brands and manufacturers,” said Ivan Lam, Senior Analyst at Counterpoint Research. “Brand owners now have no choice but to shift production elsewhere.”
India is stepping in to fill that void. Major manufacturers such as Apple and Samsung are ramping up production in the country to meet international demand, helping India climb steadily in the global manufacturing value chain.
“India’s manufacturing abilities have really improved over the past decade,” noted Prachir Singh of Counterpoint. “We’ve seen steady investment from global and local electronics manufacturing companies. Now, the country is ready to handle larger and more complex production demands.”
The Indian government is also playing a key role.
The Electronics Components Manufacturing Scheme (ECMS) offers financial incentives for companies investing in local component production, further boosting the country's electronics ecosystem.
While Vietnam continues to attract investment due to its efficient export network and proximity to China, India’s scale, skilled labour force, and government support are giving it an edge.
That said, experts caution that relocating supply chains takes time. “If Apple started making iPhones in the US today, prices would shoot up by $150–$200,” said Neil Shah of Counterpoint. “Setting up factories, training workers, and building an ecosystem takes time and money.”
Despite these challenges, the momentum is clearly shifting in India’s favour. With strong government backing and global tech giants setting up production bases, India is well on track to become the next major smartphone manufacturing powerhouse.
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