India To Produce 20% Of Global Smartphones Within 2 Years

India is rapidly emerging as a key alternative manufacturing hub in the global electronics supply chain. According to a report, the country could account for nearly one-fifth of the world’s smartphone production within the next one to two years.

This shift reflects a broader transformation in the global electronics manufacturing landscape, as companies seek to reduce their dependence on China and diversify production across multiple countries. The strategy, widely described as “China plus one”, has gained momentum amid supply-chain disruptions, rising geopolitical tensions, tariffs and tighter controls on critical technologies.

For more than a decade, China dominated the global electronics manufacturing industry, supported by its vast supplier ecosystem, infrastructure, ports, power networks and skilled workforce. At its peak, more than two-thirds of the world’s smartphones were produced in China, making the country the centre of the global smartphone supply chain.

However, the Covid-19 pandemic exposed the vulnerabilities of concentrating production in a single geography. Factory shutdowns and disruptions at ports affected manufacturers and consumers across the world, while subsequent tariff measures and export restrictions further encouraged companies to reassess their supply-chain strategies.

As companies began adopting the China-plus-one approach, production started expanding into other Asian economies, particularly India and Vietnam. By 2025, China, India and Vietnam together accounted for more than 90 per cent of global smartphone production, highlighting the growing concentration of manufacturing within these three markets.

China continued to dominate global production with an estimated 63 per cent share, but India had increased its share to around 18 per cent. Analysts expect India's share to rise further and potentially reach 20 per cent, or one-fifth of global smartphone production, within the next year or two.

The development marks a significant change in India's role in the global electronics industry. The country was traditionally known more for its services, information technology and software capabilities, but has increasingly positioned itself as a major destination for electronics and smartphone manufacturing.

The Indian government has set a target of 35-40% domestic value addition in mobile phones, according to MeitY Secretary S Krishnan. This goal is expected to be achieved through the growth of domestic smartphone manufacturers and the expansion of production capacity in the country.

The growth of India's smartphone manufacturing industry is expected to have a significant impact on the country's economy and job market. As the industry continues to expand, it is likely to create new job opportunities and contribute to the country's economic growth.

In conclusion, India's emergence as a key manufacturing hub in the global electronics supply chain is a significant development that is expected to have a major impact on the country's economy and job market. With the country expected to account for one-fifth of global smartphone production within the next two years, India is poised to become a major player in the global electronics industry.

The Indian government's efforts to promote the growth of the domestic electronics manufacturing industry are expected to continue, with a focus on increasing domestic value addition and expanding production capacity. As the industry continues to grow, it is likely to create new opportunities for businesses and individuals in the country.

Overall, the growth of India's smartphone manufacturing industry is a positive development that is expected to have a significant impact on the country's economy and job market. With the country's share of global smartphone production expected to rise to 20% within the next two years, India is poised to become a major player in the global electronics industry.