According to the Times of India, domestic contract manufacturers are gradually changing the landscape of smartphone production in India, with local companies now producing at least one in four smartphones. This is a subtle but significant change in the nation's electronics ecosystem.
Dixon Technologies and Bhagwati Products have spearheaded the growth, with Dixon surpassing Samsung Electronics in total production volumes to become India's biggest smartphone producer in 2025.
With a 19% market share and an 89% increase in output, Dixon led the electronics manufacturing services (EMS) rankings thanks to growing orders from international companies like Motorola, Realme, and Xiaomi. The improvements are indicative of a larger trend by smartphone manufacturers to contract out production to specialised partners.
Foxconn came in second with a 16% share, up from 12% a year earlier, according to Counterpoint Research. This was mostly due to export-related sales connected to Apple. Despite its size, Samsung's share fell to 18% from 20% in 2024 because to very slow export growth.
With a 9% stake, Bhagwati Products, a joint venture between Micromax Informatics and Chinese original design manufacturer Huaqin Technologies, made it into the top five. Its ascent has been supported by manufacturing orders from Vivo, Oppo, and Realme, demonstrating how Chinese companies are strengthening local alliances as they adjust supply chains.

In 2025, India's smartphone production increased by 8%, with exports rising by 28% to make up almost one-third of total production. In contrast, domestic demand stayed mostly unchanged, with sales just slightly increasing by 1%.
Policy support, such as production-linked incentives (PLI) and loosened foreign investment regulations, has accelerated this shift, according to analysts. According to Abdul Rahman Khan, a research analyst at Counterpoint Research, Oppo and Vivo's outsourcing approach was revolutionary.

Khan told TOI that "Oppo and Vivo started scaling outsourcing meaningfully around 2024, but volumes ramped up once it did, flowing to domestic manufacturers like Bhagwati Products."He continued, "In the case of Bhagwati Products, its partnership with Huaqin, which has an established supply chain presence and relations in the industry, has also worked."
Increased scrutiny of foreign direct investment has also encouraged Chinese businesses to form joint ventures with Indian businesses in order to increase local manufacturing.
"A redistribution of volumes is also being triggered by the PLI cycle coming to an end," Khan stated. "As brands reevaluate their cost and partnership strategies, we are witnessing a portion of that shift towards players like Dixon Technologies."

In 2026, exports are anticipated to continue to be the key driver of growth, keeping smartphones at the forefront of India's quest for electronics manufacturing. Analysts warn that hazards still exist, though.
According to Tarun Pathak, research director at Counterpoint Research, "near-term headwinds, such as disruptions due to the US-Iran war could impact logistics, while sustained increases in memory prices may create demand-side pressures over the longer term."