India Smartphone Manufacturing Rises in 2025 as Export Boom Grows, but New Risks Loom

Smartphone manufacturing in India grew 8% year over year in 2025, according to Counterpoint Research’s Make in India tracker. The gain was powered mainly by a 28% jump in exports, while domestic shipments rose a modest 1%.

Exports made up about one-third of all smartphones produced in India, underlining the country’s shift from serving local demand to supplying overseas markets. Analysts say this export mix is increasingly central to India’s electronics manufacturing ambitions.

Apple supply chain drives growth

Foxconn, Apple’s key assembly partner, posted 48% year-over-year growth in India output as iPhone exports accelerated. Tata Electronics also expanded its role in the Apple ecosystem, adding momentum to outbound shipments.

Samsung’s export growth was far smaller at 4% compared with 2024, suggesting gains were uneven across brands and manufacturers. The pattern highlights how strongly India’s recent manufacturing surge is tied to a few fast-scaling supply chains.

Headwinds build for 2026 outlook

Counterpoint noted that electronics manufacturing became India’s third-largest export category in fiscal year 2025, led by smartphones. The firm expects it could move into second place in FY2026 if current trends hold.

Contract manufacturers also benefited as more brands leaned on outsourcing, with Dixon Technologies reporting 89% growth in orders and Bhagwati Products expanding volumes after vivo shifted some production externally. Orders tied to Oppo and Realme further supported capacity utilization.

Still, industry watchers see potential drag from rising memory prices and a softer smartphone market, which could pressure margins and factory planning. Counterpoint added that diversifying into adjacent categories such as laptops and tablets may help stabilize growth if handset demand cools.