Smartphone Manufacturing in India: Growth, Recent Investments and Emerging Business Opportunities
India's smartphone manufacturing industry has evolved into a major contributor to domestic electronics production and exports. Supported by government initiatives, investments by global manufacturers and an expanding supplier ecosystem, the sector is moving beyond handset assembly towards deeper domestic manufacturing and greater participation in global supply chains.
For manufacturers, component suppliers, electronics manufacturing services (EMS) providers and investors, this transformation creates opportunities across multiple parts of the smartphone value chain. However, identifying a viable opportunity requires understanding not only industry growth but also recent policy changes, competitive dynamics and the requirements of specific manufacturing segments.
India's Smartphone Manufacturing Industry: Growth at a Glance
According to the Government of India's Ministry of Electronics and Information Technology (MeitY), mobile phone production increased from approximately INR18,000 crore in FY 2014–15 to INR6.27 lakh crore in FY 2025–26. Mobile phone exports rose from approximately INR1,500 crore to INR2.59 lakh crore during the same period.
The government also reported that 99.2% of mobile phones used in India are manufactured domestically, while India has become the world's second-largest mobile phone manufacturer by volume.
These figures demonstrate the scale of India's manufacturing expansion. They also highlight the importance of smartphones to the country's broader electronics manufacturing and export strategy.
Source: Press Information Bureau (PIB), Government of India, 29 July 2026.
Recent Developments in India's Smartphone Manufacturing Industry
Several developments in 2026 are shaping the next phase of India's smartphone manufacturing ecosystem.
- Government Notifies a INR62,500 Crore Mobile Phone Manufacturing Scheme
On 21 August 2026, MeitY notified the Mobile Phone Manufacturing Scheme (MPMS), with a budgetary outlay of INR62,500 crore for FY 2026–27 to FY 2030–31.
The scheme is designed to expand manufacturing scale, deepen domestic value addition, strengthen supply chains and support the development of Indian mobile phone brands.
Its provisions include differentiated incentives for eligible manufacturing activities, additional incentives linked to domestic sourcing of key components and support for qualifying Indian brands' design and research and development activities.
The government expects cumulative mobile phone production to reach approximately INR39 lakh crore over the scheme's five-year tenure. This is a projected outcome, not a realised production figure.
The scheme is particularly relevant to businesses evaluating component manufacturing, local sourcing and opportunities to supply smartphone manufacturers.
Source: PIB, 21 August 2026.
- Dixon Technologies and Vivo Receive Approval for a Manufacturing Joint Venture
On 9 July 2026, Reuters reported that the Indian government had approved a joint venture between Dixon Technologies and Vivo Mobile to establish a smartphone manufacturing company in India.
The development illustrates how domestic electronics manufacturers and international smartphone brands can collaborate to expand local production capabilities.
For prospective suppliers and manufacturing partners, such collaborations may create opportunities to investigate procurement requirements, component sourcing, assembly services and supporting production activities. However, specific supplier opportunities depend on the requirements and decisions of the companies involved.
Source: Reuters, 9 July 2026.
- Domestic Component Manufacturing Gains Policy Attention
On 17 August 2026, the government reported that 106 projects had been approved under the Electronics Component Manufacturing Scheme (ECMS), covering 30 products across 15 states.
The approved projects represented expected investment of INR69,548 crore and projected production of INR5.34 lakh crore. The government also reported that 38 plants were operational, with another 16 in advanced stages of construction.
These figures cover the wider electronics components ecosystem, rather than smartphone manufacturing alone. Nevertheless, the initiative is relevant to smartphone production because components, subassemblies and manufacturing equipment form an important part of the supply chain.
Source: PIB, 17 August 2026.
Together, these developments point towards a policy and investment environment increasingly focused on manufacturing scale, local sourcing and supply-chain depth.
Business Opportunities Across the Smartphone Manufacturing Value Chain
The expansion of smartphone production creates potential opportunities beyond final handset assembly.
Electronic components: Printed circuit boards, connectors, camera modules, sensors and other specialised components are essential to smartphone production. Businesses can investigate demand, technical requirements and opportunities to supply established manufacturers.
Electronics manufacturing services: EMS providers support assembly, component sourcing, product testing and manufacturing operations. Companies considering entry must assess production capabilities, customer qualification requirements and competitive pricing.
Manufacturing equipment and automation: Precision assembly systems, inspection equipment and testing instruments support production quality and efficiency. Suppliers need to understand the technical specifications and service requirements of their target customers.
Accessories and supporting products: Charging accessories, cable assemblies, packaging and related products can offer alternative entry points into the smartphone ecosystem, depending on customer demand and competitive conditions.
Design and engineering services: Product engineering, testing, design verification and manufacturing engineering can support companies seeking to develop higher-value capabilities beyond assembly.
Each segment has different capital requirements, technical barriers and commercial risks. A broad increase in smartphone production does not necessarily translate into equal growth across every component or service category.
Challenges for New Entrants
Despite the sector's expansion, entering smartphone manufacturing can involve considerable operational and commercial challenges.
Capital requirements vary according to the product, production scale and equipment needed. Suppliers must also meet customer requirements for quality, consistency, traceability and delivery reliability.
Competition can be intense, particularly in standardised components and price-sensitive manufacturing services. Access to established customers may require technical qualification, production validation and sustained investment.
Supply-chain dependencies, working capital requirements and changing product specifications can further affect profitability. Companies must also evaluate relevant regulations, manufacturing approvals and eligibility conditions for government schemes.
These considerations make product-specific market research essential before committing significant resources.
How Market Research Supports Smartphone Manufacturing Investments
A structured market assessment can help businesses identify opportunities within India's smartphone manufacturing ecosystem.
The process begins by defining the target product or service and identifying the customer segments it intends to serve. Market sizing can then help establish the addressable demand, while competitive analysis identifies existing suppliers, their capabilities and potential gaps in the market.
Location assessment can compare access to manufacturing clusters, customers, suppliers, logistics and skilled labour. Financial analysis can examine investment requirements, operating costs, capacity utilisation and possible revenue scenarios.
Businesses should also evaluate applicable government schemes and regulatory requirements using current official guidelines.
This approach helps translate industry-wide growth into a more specific assessment of commercial viability and market-entry risk.
OMR Global's Market Entry Blueprint for Smartphone Manufacturing
For businesses exploring smartphone manufacturing and related electronics opportunities, OMR Global's Market Entry Blueprint provides a structured approach to evaluating market entry and expansion.
The service combines market sizing, competitive analysis, location assessment, regulatory and licensing research, and government scheme guidance. Depending on the selected plan, it may also include revenue projections, scenario analysis and risk considerations.
For component suppliers, EMS providers and prospective manufacturers, this research can help clarify target markets, competitive conditions and investment considerations before significant capital is committed.
Conclusion
India's smartphone manufacturing industry has expanded substantially in production and exports. Recent developments—including the notification of the ?62,500 crore Mobile Phone Manufacturing Scheme, the approved Dixon–Vivo joint venture and continued investment in domestic component manufacturing - highlight the sector's evolving direction.
The next phase presents opportunities across components, contract manufacturing, testing, automation and engineering services. However, successful market entry depends on identifying the right segment, understanding customer requirements and evaluating the investment and operating environment.
Explore OMR Global's Market Entry Blueprint to assess your target market, evaluate the competitive landscape and make more informed market-entry decisions.