Riding an export surge, India’s smartphone manufacturing expands, with Dixon leading growth and Bhagwati entering the top five as global supply chains shift.
India’s smartphone manufacturing grew 8% year-on-year in 2025, supported primarily by a 28% rise in exports, which accounted for nearly one-third of total production, according to Counterpoint Research.
The data indicate modest domestic growth of 1% during the year, with export demand emerging as the main driver of expansion. Foxconn recorded a 40% increase in overall production and a 48% rise in exports, largely linked to shipments of Apple devices. Tata Electronics also contributed to export growth as a key assembler for Apple, while Samsung reported a 4% increase in export-led production from its in-house facilities.
Among contract manufacturers, Dixon Technologies emerged as the fastest-growing player, with production rising 89% year-on-year. The increase was driven by higher orders from brands such as Motorola, realme and Xiaomi.
Bhagwati Products Limited entered the top five manufacturers, supported by increased outsourcing from vivo, along with additional volumes from OPPO and realme. Vivo’s decision to expand production beyond its own facilities contributed significantly to Bhagwati’s growth.
Analysts note that exports are becoming central to India’s electronics manufacturing strategy. Smartphones played a major role in making electronics the third-largest export category in FY25, with further growth expected.
Domestic EMS players continue to expand even as the first phase of the PLI scheme nears completion. This has been possible due to exports and sustained premiumization in the domestic market. Players beyond the top five are expected to play a more significant role in 2026 as OEMs diversify their partnerships,” said Prachir Singh, Senior Analyst at Counterpoint.
Policy measures, including special economic zone reforms, budgetary support, and relaxations on foreign direct investment (FDI), have supported this expansion.
However, near-term risks remain. Supply chain disruptions linked to geopolitical tensions and rising memory prices could affect both logistics and demand. Despite these challenges, industry observers expect contract manufacturers beyond the top five to gain importance as brands diversify partnerships.
Efforts to strengthen domestic component manufacturing, including initiatives such as the Electronics Component Manufacturing Scheme (ECMS), are seen as critical for increasing value addition.
Expansion into adjacent categories such as tablets and laptops, along with upstream investments in components, is expected to shape the next phase of growth in India’s electronics manufacturing sector.
