India’s steps in the smartphone sector are seen growing rapidly. The increasing production and export figures of companies in the last few years are a clear testimony to this. Now the figures have come out, they are even more surprising. According to TOI report, domestic contract manufacturers are continuously changing India’s smartphone production environment, with at least one in every four devices now being made by local companies. This is a quiet but important change in the electronics ecosystem of the country. This rise has been led by Dixon Technologies and Bhagwati Products. In 2025, Dixon will become India’s largest smartphone manufacturer in terms of total production, surpassing Samsung Electronics.
Dixon reached the top
Dixon has topped the ranking of Electronics Manufacturing Services (EMS) with 19 percent market share. Its output increased by a massive 89 percent due to increasing orders from global brands like Motorola, Realme and Xiaomi. These figures show a major change in smartphone manufacturing companies, in which they are outsourcing the production work to specific partners.
According to Counterpoint Research, Foxconn stood second with 16 percent share. Last year its share was 12 percent. The main reason for its success is the export shipments related to Apple. Samsung, despite its large scale, slipped from a 20 percent share to 18 percent by 2024. The reason for this was the relatively slow growth in exports.
Bhagwati Products — a joint venture between Micromax Informatics and Chinese original design manufacturer Huaqin Technologies — joined the top five companies with a 9 per cent share. The basis of its success is the manufacturing work done by Vivo, Oppo and Realme. This shows that Chinese brands are strengthening their partnerships with local companies by reorganizing their supply chains.
slight increase in sales
India’s smartphone manufacturing to increase by 8 percent in 2025. At the same time, there was a huge increase of 28 percent in exports, which was almost one-third of the total production. In contrast, domestic demand remained almost flat, and sales grew by only a modest 1 percent. Experts say support from government policies — including the Production-Linked Incentive (PLI) and relaxation in foreign investment rules — have helped accelerate the pace of this change. Abdul Rehman Khan, research analyst at Counter Point Research, said that the outsourcing strategy of Oppo and Vivo proved to be a turning point.
How is the growth happening?
Khan told TOI that Oppo and Vivo started outsourcing on a large scale around 2024. As soon as they did this, the production volume increased tremendously and this work started going to domestic manufacturing companies like Bhagwati Products. He further said that in the case of Bhagwati Products, its partnership with Huaqin has also proved to be very beneficial. Huaqin already has a strong foothold and good relationships in the supply chain industry. Due to strict monitoring on foreign direct investment, Chinese companies are also moving towards increasing manufacturing at the local level by forming joint ventures with Indian companies.
Exports will remain the growth engine in 2026
Khan said that as the end of the PLI cycle is nearing, the distribution of volumes is also happening again. We are seeing some of this change moving towards companies like Dixon Technologies, as brands are realigning their cost and partnership strategies. It is expected that exports will remain the main engine of growth in 2026, due to which smartphones will remain at the center of India’s electronics manufacturing campaign. However, analysts say that some risks still remain. Tarun Pathak, research director at Counterpoint Research, said near-term disruptions, such as those caused by the US-Iran war, could impact logistics. At the same time, continuous increase in memory prices may put pressure on demand in the long run.
