India Poised for Smartphone Manufacturing Boom by 2025

India's Rising Share in Global Smartphone Production

New Delhi, June 10: A recent report indicates that as global smartphone production declines, India is on track to significantly increase its output by 2025, potentially capturing a remarkable 20 percent of the global market share, driven by strong export demand from major players like Apple and Samsung.

According to the latest data from Counterpoint Research, the worldwide smartphone manufacturing output is projected to decrease by 1 percent year-on-year in 2025, following a 4 percent increase in 2024. This decline is attributed to tariff impacts and a general slowdown in the industry.

In 2024, China, India, and Vietnam accounted for over 90 percent of global manufacturing output, with India showing the most significant growth.

However, the performance of manufacturing outputs from various countries in 2025 is expected to vary. China is anticipated to experience a downturn due to tariffs, leading to reduced output and domestic challenges.

The shift in global smartphone manufacturing has accelerated since the Covid-19 pandemic, but tariffs have adversely affected all industry players, from component suppliers to manufacturers.

“As a result, brand owners are compelled to relocate production from China and increase their manufacturing capacities in other nations,” stated Ivan Lam, Senior Analyst at Counterpoint Research.

India and Vietnam are emerging as the primary beneficiaries of this shift, with India showcasing substantial growth potential and Vietnam benefiting from its proximity to China and established contract manufacturing capabilities.

Prachir Singh, another Senior Analyst at Counterpoint Research, noted the recent surge in manufacturing in India, highlighting that global EMS giants are investing in the country, enhancing local manufacturing capabilities to meet rising production demands after years of development.

India's manufacturing ecosystem is consistently evolving, with improvements in both yield and complexity. To further enhance the component ecosystem, the government has introduced the Electronics Components Manufacturing Scheme (ECMS), encouraging companies to invest and establish operations in India.