India’s Mobile Manufacturing | New Delhi, Nov. 2: India’s mobile phone manufacturing industry has achieved remarkable growth over the past decade, transforming the country into the world’s second-largest mobile manufacturing hub after China. However, the next big challenge is to move beyond assembling smartphones for international companies and establish globally competitive Indian brands with indigenous technology, designs and intellectual property.
The scale of India’s manufacturing expansion is reflected in the latest figures. Mobile phone production, which stood at just ₹18,000 crore in 2014-15, increased dramatically to ₹6.27 lakh crore in 2025-26. Similarly, mobile phone exports have grown from approximately ₹1,500 crore to nearly ₹2.59 lakh crore during the same period.
Government initiatives, particularly the Production-Linked Incentive (PLI) scheme, have attracted major international manufacturers and specialised suppliers to India. Companies such as Dixon Technologies have also strengthened the country’s contract manufacturing ecosystem by producing smartphones for global brands.
Despite these achievements, policymakers and industry players are now focusing on developing Indian-owned brands capable of competing internationally.
₹62,500 Crore Scheme to Strengthen Indian Brands
The government announced a major mobile manufacturing incentive programme worth ₹62,500 crore in August, aiming to strengthen domestic companies and encourage the development of indigenous smartphone technology.
Unlike earlier initiatives that primarily encouraged manufacturing and assembly operations, the new programme places greater emphasis on Indian ownership, research and development, product design and intellectual property.
Under the proposed incentive structure, eligible Indian companies can receive incentives of up to 5% on sales, an additional 3% for research and development activities and up to 1.5% for domestic procurement of key components.
The scheme is proposed to operate from 2026-27 to 2030-31.
The government’s broader objective is to help Indian companies evolve from contract manufacturers into technology-driven businesses with their own products, designs and intellectual property.
This approach is expected to encourage domestic manufacturers to invest in innovation and develop products that can compete with established international smartphone brands.
India’s Mobile Manufacturing | Lava and Micromax Prepare for Expansion
Indian smartphone manufacturers are looking to capitalise on the proposed incentives and the growing domestic manufacturing ecosystem.
Lava, which has survived several challenges in the highly competitive smartphone market, is planning to invest approximately ₹1,100 crore over the next five years.
The company intends to expand beyond smartphone assembly and strengthen its component manufacturing capabilities. Its plans include investments in displays, camera modules and printed circuit boards.
Developing these capabilities within India could reduce dependence on imported components while improving the company’s control over product quality and manufacturing costs.
Meanwhile, Bhagwati Products, the manufacturing arm associated with Micromax, is preparing to establish new facilities in Greater Noida in partnership with China’s Huaqin.
The proposed expansion is expected to contribute to India’s domestic smartphone supply chain and strengthen local manufacturing capabilities.
These developments indicate that Indian companies are increasingly interested in controlling more stages of smartphone production rather than depending entirely on imported components.
Karbonn and New-Age Brands Eye Market Opportunities
Apart from Lava and Micromax, other domestic brands are also exploring opportunities to regain their positions in the smartphone market.
Karbonn, which once enjoyed considerable popularity in India’s budget smartphone segment, is reportedly preparing for a comeback with new features and updated products.
New-generation domestic companies such as AI+ Nova are also attempting to attract consumers through features such as large battery capacities and Android software updates.
ALSO READ: Rahul Gandhi Predicts Modi Government’s Fall Amid CEC Row
The renewed interest in Indian smartphone brands reflects an opportunity created by the expansion of domestic manufacturing and growing demand for affordable devices.
However, establishing a strong presence in the market will require more than competitive pricing.
Low Prices Alone Cannot Guarantee Success
Although India’s manufacturing capabilities have improved significantly, domestic smartphone brands continue to face difficulties in attracting large numbers of consumers.
Industry reports indicate that smaller Indian brands currently sell only around three lakh to five lakh units per quarter.
Online sales channels have helped companies reduce distribution costs and reach customers directly. However, consumers increasingly consider several other factors before purchasing a smartphone.
Battery life, durability, camera performance, software updates, after-sales service and long-term reliability play an important role in purchasing decisions.
A low-priced smartphone may attract a customer initially, but retaining that customer for future purchases depends largely on product quality and brand trust.
This is where Indian manufacturers need to make significant progress.
ALSO READ:EPFO WhatsApp Service: Check PF Balance And Passbook
Industry experts believe companies should use government research and development incentives to improve industrial design, camera processing, software capabilities and component integration.
Improving these areas will be essential if Indian brands want to establish themselves as reliable alternatives to international manufacturers.
India’s Mobile Manufacturing | Competing Against China, Apple and Samsung
Indian smartphone manufacturers face competition from two distinct groups of international players.
Chinese smartphone companies remain strong competitors in the affordable and mid-range segments. Although some brands have experienced temporary setbacks in the Indian market, they could regain momentum if component costs, including memory prices, decline.
On the other hand, Apple and Samsung maintain strong positions in the premium smartphone segment, supported by established brand recognition, technology, product quality and customer loyalty.
For Indian companies, competing against these manufacturers will require sustained investment in technology and product development.
Government subsidies can provide financial support, but they cannot independently guarantee commercial success.
Domestic brands must develop products that encourage repeat purchases and establish long-term relationships with consumers.
India’s Mobile Manufacturing | Building a Strong Domestic Component Ecosystem
One of the biggest challenges facing India’s smartphone industry is dependence on imported components.
Although final assembly operations have expanded considerably, several critical components and technologies continue to come from overseas suppliers.
Developing domestic manufacturing capabilities for displays, camera modules, circuit boards and other essential components could strengthen India’s supply chain.
A stronger local ecosystem would also help manufacturers manage international supply disruptions and reduce production uncertainties.
The availability of reliable domestic suppliers could improve cost efficiency while creating opportunities for specialised Indian technology companies.
The government’s proposed incentives for domestic component procurement are expected to encourage progress in this direction.
India’s Next Smartphone Manufacturing Challenge
India’s mobile manufacturing industry has already demonstrated its ability to attract global companies, expand production and increase exports.
The next phase will depend on whether domestic manufacturers can convert this industrial growth into globally competitive Indian smartphone brands.
Companies must strike the right balance between technology, manufacturing efficiency, product quality and consumer confidence.
Lava, Micromax, Karbonn and emerging domestic brands have an opportunity to benefit from the expanding manufacturing ecosystem and government support.
However, sustained investment in research, innovation, software and after-sales services will determine their long-term success.
India’s ambition is no longer limited to becoming a major manufacturing destination for global smartphone companies. The larger goal is to create homegrown technology brands that can compete with Chinese manufacturers, Apple and Samsung in international markets.
Now you can get the latest stories from Indtoday on Telegram every day. Click the link to subscribe. Click to follow Indtoday’s Facebook page, Twitter, and Instagram. For all the latest Hyderabad News updates and Follow us on GoogleNews and Follow Our Youtube Channel on Google
