New Delhi– As global smartphone manufacturing faces a downturn, India is set to emerge as the biggest beneficiary in 2025, with output projected to grow in double digits and account for 20 percent of global production, driven by strong export demand from Apple and Samsung, according to a report by Counterpoint Research.
Global smartphone manufacturing output is expected to decline by 1 percent year-on-year in 2025, following a 4 percent increase in 2024, as the industry grapples with tariffs and slowing demand, the report said.
In 2024, China, India, and Vietnam accounted for over 90 percent of global smartphone production. While China is expected to see a decline in output next year due to tariff impacts and weak domestic performance, India is forecast to continue its upward trajectory.
“The imposition of tariffs has impacted every level of the smartphone supply chain—from component makers to final distributors—forcing brands to move more production outside China,” said Ivan Lam, Senior Analyst at Counterpoint Research. “India and Vietnam are the primary beneficiaries of this shift.”
India’s rise has been fueled by continued investment from global electronics manufacturing services (EMS) firms and increasing involvement from local manufacturers.
“Over the last decade, India’s production capabilities have grown significantly,” said Prachir Singh, Senior Analyst at Counterpoint. “Now, the country is equipped to handle both higher volumes and more complex manufacturing tasks.”
The report also highlighted the Indian government’s push to strengthen domestic production through initiatives like the Electronics Components Manufacturing Scheme (ECMS), which incentivizes local investment in component manufacturing.
Meanwhile, Vietnam remains a key player thanks to its established contract manufacturing base and its logistical proximity to China.
As global smartphone brands continue to diversify their supply chains, India is rapidly becoming a preferred destination for high-volume, export-driven manufacturing—solidifying its position in the global electronics production landscape. (Source: IANS)
