India’s smartphone manufacturing sector is experiencing a remarkable surge, with production rising 6% in 2024. This growth is largely attributed to the government’s Production-Linked Incentive (PLI) scheme, which has successfully attracted global manufacturers to set up local production facilities.
Samsung Maintains Top Position in Indian Smartphone Manufacturing
Samsung has solidified its position as the leading smartphone manufacturer in India, capturing a 20% market share in 2024. The South Korean tech giant saw a 7% year-on-year growth, bolstered by a significant 13% increase in exports[1][2].
Key Factors Behind Samsung’s Success
- Diverse Product Range: Samsung manufactures a wide array of smartphones in India, from budget-friendly models to premium flagships like the Galaxy S25 series.
- Expanded Production Capacity: The company’s Noida plant has become a crucial hub for both domestic sales and exports.
- Government Incentives: Samsung has effectively leveraged the PLI scheme to boost its local manufacturing capabilities.
Other Major Players in the “Made in India” Smartphone Market
While Samsung leads the pack, several other manufacturers have made significant strides in India’s smartphone production landscape:
Vivo
The Chinese smartphone maker secured the second position with a 14% market share, showcasing strong growth in both online and offline channels[3].
Foxconn and Oppo
Both companies claimed a 12% market share each. Foxconn, known for assembling iPhones in India, has plans to further expand its local manufacturing capabilities[4].
DBG
This rising player also captured a 12% market share, demonstrating the growing diversity in India’s smartphone manufacturing ecosystem.
Apple’s Growing Presence in Indian Manufacturing
While not among the top manufacturers by volume, Apple has made significant inroads in Indian smartphone production:
- Record Growth: Apple’s shipments in India reached 12 million units in 2024, marking a 35% year-on-year increase[5].
- Local Production Partners: Foxconn and Tata Electronics assemble iPhones in India, with Tata experiencing rapid growth due to iPhone 15 and iPhone 16 production.
- Export Powerhouse: Together with Samsung, Apple accounts for approximately 94% of India’s smartphone exports[6].
The Impact of India’s PLI Scheme on Smartphone Manufacturing
The Production-Linked Incentive scheme has been a game-changer for India’s smartphone industry:
- Attracting Investment: The scheme has encouraged both domestic and foreign companies to set up or expand manufacturing facilities in India.
- Boosting Exports: India’s smartphone exports have seen a significant uptick, reducing the country’s trade deficit in electronics.
- Job Creation: The expansion of manufacturing facilities has led to increased employment opportunities in the sector.
- Technology Transfer: Global companies are bringing advanced manufacturing technologies to their Indian operations.
Challenges and Future Outlook
Despite the impressive growth, India’s smartphone manufacturing sector faces some challenges:
- Supply Chain Development: Building a robust local component supply chain remains a work in progress.
- Skilled Workforce: There’s an ongoing need to train and develop a skilled workforce to meet the demands of high-tech manufacturing.
- Global Competition: India must continue to improve its manufacturing ecosystem to compete with established hubs like China and Vietnam.
Market analysts predict that “Made in India” smartphone manufacturing will continue its upward trajectory, with double-digit growth expected in the coming year. As the ecosystem matures and more companies take advantage of government incentives, India is poised to become an increasingly important player in the global smartphone manufacturing landscape.
India’s smartphone manufacturing success story demonstrates the power of targeted policy initiatives in transforming a country’s industrial capabilities. As Samsung, Apple, and other major players continue to invest in local production, the “Made in India” label is set to become increasingly prevalent in the global smartphone market.