India Scales Smartphone Production Amid Complex Ties With China
New Delhi is expanding its electronics ecosystem to reduce import reliance, even as it remains tethered to Chinese supply chains.
India is rapidly scaling its smartphone manufacturing capabilities to challenge the global dominance of East Asian supply chains. By leveraging aggressive government incentives, the nation aims to transition from a primary consumer of electronics to a global export hub.
Central to this push is the Mobile Phone Manufacturing Scheme (MPMS) and various production-linked incentive (PLI) programs designed to attract global brands. The strategy is yielding measurable results: India's smartphone exports grew by 6% in 2024, with Samsung emerging as a primary driver of this manufacturing surge. However, a significant gap remains in global scale. In 2025, China accounted for 63% of global smartphone production, while India's share stood at 18%, according to TechCrunch.
The Strategic Paradox
This industrial expansion is part of a broader effort to achieve "strategic autonomy" and move away from a China-centric manufacturing model. Despite these ambitions, India's electronics ecosystem remains deeply intertwined with its neighbor. India continues to rely heavily on Chinese investment and components to keep its assembly lines operational. This economic interdependence is underscored by trade data; China was India's largest trading partner during the 2023-24 financial year.
Economic Implications
The tension between India's geopolitical goals and its practical industrial needs creates a complex economic dynamic. While New Delhi seeks to break China's grip on the supply chain, the reality of manufacturing suggests that cooperation may be more productive than competition. If India can successfully leverage Chinese expertise while building its own domestic capabilities, it could accelerate its transition from a simple assembler of parts to a high-value manufacturer of complex electronics.
The Path Forward
Beijing appears to view India's growth not as a rivalry, but as a potential partnership. The Global Times has asserted that India's manufacturing ambitions do not pose a threat to China's own capacity. Instead, the outlet suggests that deepening supply chain cooperation would bring "greater benefits to each other's economies."
Whether New Delhi will embrace this cooperative middle ground remains to be seen. For now, the industry is watching to see if India can sustain its export growth while diversifying the sources of its critical components.