India is rapidly transforming from a support role to a central hub in the world’s smartphone industry, with projections to produce nearly one-fifth of global smartphones within two years, signalling a major shift in the supply chain landscape away from China.
India is moving from a supporting role to a more central one in the world’s smartphone supply chain. A report cited by The Hans India says the country could produce nearly one-fifth of the world’s smartphones within one to two years, underscoring how quickly manufacturers are shifting capacity beyond China. That change reflects a broader push by global electronics makers to spread risk across more than one country. The China-plus-one approach, as supply-chain analysts describe it, has gained force as firms confront trade tensions, supply disruptions and tighter controls on key technologies.
For years, China sat at the heart of global electronics production, backed by a deep network of suppliers, ports, factories and skilled workers. At one point, more than two-thirds of the world’s smartphones were assembled there. The Covid-19 pandemic exposed the weakness of depending so heavily on a single production base, as shutdowns and shipping bottlenecks rippled through markets. Since then, companies have increasingly sought a second manufacturing foothold, with India and Vietnam emerging as the main beneficiaries.
By 2025, China, India and Vietnam together were producing more than 90% of the world’s smartphones, according to the report. China still accounted for an estimated 63% of output, but India’s share had risen to about 18%. The report said analysts expect that figure to edge up to 20% soon, a milestone that would cement India’s position as one of the most important electronics manufacturing centres outside China.
The shift also marks a broader change in India’s industrial profile. Long known more for software, technology services and back-office work, the country is now being viewed as a serious destination for hardware production as well. Apple’s expansion in India illustrates the trend: the company assembled $14 billion worth of iPhones in the country in fiscal 2024, according to The New Indian Express, with India accounting for 14% of its global iPhone output. That growth suggests the move away from China is no longer just a contingency plan, but a lasting reordering of how the world makes smartphones.
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