India’s smartphone manufacturing sector has achieved a significant milestone, recording a 6% year-on-year growth in 2024, according to Counterpoint’s ‘Make in India’ Service report. This growth has been largely fueled by the rising exports of Apple and Samsung, which together accounted for an impressive 94% of India’s smartphone exports.
Key Drivers of Growth
The Indian government’s Production-Linked Incentive (PLI) scheme has played a pivotal role in this achievement. By encouraging global manufacturers to establish or expand their production facilities in India, the initiative has bolstered local manufacturing capabilities and reduced reliance on imports. Apple and Samsung have significantly expanded their operations in the country, aligning with India’s strategy to strengthen its presence in global supply chains.
Performance Highlights
- Samsung: Retained its position as the top smartphone manufacturer in India, achieving a 7% year-on-year growth, driven by a 13% increase in exports.
- Apple: Supported by its contract manufacturer Foxconn, Apple reported a 19% rise in manufacturing volumes, with the iPhone 15 and iPhone 16 models being major contributors.
- Tata Electronics: Emerged as the fastest-growing manufacturer in 2024, registering a remarkable 107% year-on-year growth. The company has expanded its iPhone assembly operations and ventured into semiconductor fabrication.
Market Dynamics
The report also highlighted the challenges faced by other manufacturers. For instance, OPPO experienced a 34% decline in shipments due to intense competition and a growing reliance on contract manufacturing. Meanwhile, Dixon Technologies led the overall mobile handset segment, reporting a 39% year-on-year growth, driven by strong partnerships with brands like Transsion and Motorola.
Future Outlook
India’s smartphone manufacturing is expected to grow at double-digit rates in 2025, with increased local value addition. The diversification of production by global manufacturers to ensure resilient supply chains positions India as an attractive destination for electronics manufacturing.
Conclusion
The growth in ‘Made in India’ smartphone production underscores the country’s potential as a global manufacturing hub. With continued support from government initiatives and strategic investments by leading brands, India is set to play a pivotal role in the global electronics industry.
