India could account for one-fifth of global smartphone production within 1-2 years: Report

New Delhi, Aug 21 (AHN) India is rapidly emerging as a key alternative manufacturing hub in the global electronics supply chain and could account for nearly one-fifth of the world’s smartphone production within the next one to two years, according to a report.

The shift reflects a broader transformation in the global electronics manufacturing landscape, as companies seek to reduce their dependence on China and diversify production across multiple countries, according to One World Outlook report.

The strategy, widely described as “China plus one”, has gained momentum amid supply-chain disruptions, rising geopolitical tensions, tariffs and tighter controls on critical technologies.

For more than a decade, China dominated the global electronics manufacturing industry, supported by its vast supplier ecosystem, infrastructure, ports, power networks and skilled workforce. At its peak, more than two-thirds of the world’s smartphones were produced in China, making the country the centre of the global smartphone supply chain.

However, the Covid-19 pandemic exposed the vulnerabilities of concentrating production in a single geography. Factory shutdowns and disruptions at ports affected manufacturers and consumers across the world, while subsequent tariff measures and export restrictions further encouraged companies to reassess their supply-chain strategies.

As companies began adopting the China-plus-one approach, production started expanding into other Asian economies, particularly India and Vietnam. By 2025, China, India and Vietnam together accounted for more than 90 per cent of global smartphone production, highlighting the growing concentration of manufacturing within these three markets, as per the report.

China continued to dominate global production with an estimated 63 per cent share, but India had increased its share to around 18 per cent. Analysts expect India's share to rise further and potentially reach 20 per cent, or one-fifth of global smartphone production, within the next year or two, the report stated.

The development marks a significant change in India's role in the global electronics industry. The country was traditionally known more for its services, information technology and software capabilities, but has increasingly positioned itself as a major destination for electronics and smartphone manufacturing.