India set to become global smartphone factory as companies move out of China

smartphone market

India is all set to become a major player in global smartphone manufacturing, as more and more companies look to move their factories out of China. As per a CounterPoint Research report, 2025 could be a big year for India, with the country expected to account for around 20% of the world’s smartphone production.

So, what’s driving this shift? A mix of tariffs on Chinese goods and China’s slowing growth is pushing companies to look for alternative locations. “Tariffs have impacted the entire smartphone industry—from suppliers and importers to brands and manufacturers,” says Ivan Lam, Senior Analyst at Counterpoint Research. “Brand owners now have no choice but to shift production elsewhere.”

And that’s where India comes in. Big players like Apple and Samsung are increasing their production in India to meet global demand. This export push is helping India climb up the global manufacturing ladder.

“India’s manufacturing abilities have really improved over the past decade,” says Counterpoint’s Prachir Singh. “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 doing its part. A new scheme called the Electronics Components Manufacturing Scheme (ECMS) offers incentives to companies that invest in making components locally. This is expected to further strengthen India’s electronics supply chain.

Vietnam is also seeing growth, especially because of its strong export setup and proximity to China. But India stands out due to its scale, skilled workforce, and government support.

However, experts warn that moving supply chains isn’t easy or quick. “If Apple started making iPhones in the US today, prices would shoot up by $150–$200,” says Neil Shah from Counterpoint. “Setting up factories, training workers, and building an ecosystem takes time and money.”

Still, the momentum is clearly with India. With the world’s top tech brands setting up shop and strong government backing, India is well on its way to becoming the next big smartphone manufacturing hub.