Republic Day 2026: India's 75-Year Journey To Becoming A Global Smartphone Manufacturing Powerhouse

When India gained independence in 1947, the nation inherited a decimated industrial base with an economy heavily dependent on imports. Fast forward 78 years, and India stands as the world's second-largest smartphone manufacturer, assembling over 330 million mobile phones annually and exporting devices worth over Rs. 2 lakh crore.

This Republic Day, as we celebrate 76 years of constitutional democracy, it is worth examining how India transformed from a technology importer into a manufacturing hub that global giants like Apple, Samsung and Foxconn now consider indispensable.

1950s-1980s: Foundation and missed opportunities

Post-independence India under Jawaharlal Nehru emphasised scientific advancement, establishing IITs and acquiring computers from the Soviet Union by the late 1950s. The Electronics Corporation of India Limited (ECIL) was established in 1967, and Bharat Electronics acquired semiconductor technology for defence applications.

However, India's focus on import substitution had unintended consequences. The Foreign Exchange Regulation Act of 1973 limited foreign companies to 40 percent equity, prompting IBM to exit India in 1978. While East Asian nations built export-oriented electronics manufacturing, India remained inward-looking.

"India missed the microchip revolution of the 1980s - a revolution that propelled Taiwan and South Korea, and later China, to leadership positions in the world," notes an Observer Research Foundation study.

The 1980s saw a brief revival under Rajiv Gandhi's leadership. Semiconductor Complex Ltd was established, and India began producing older-generation chips. By the decade's end, India was just two years behind the latest semiconductor technologies. Then disaster struck - a 1989 fire at the SCL complex in Chandigarh derailed India's semiconductor ambitions for decades. The video below outlines theories of sabotage to derail India's growth.

1990s-2014: Liberalisation without manufacturing

The 1991 economic reforms led to a software services boom, but hardware remained import-driven. Electronic products imported in the 2010-11 fiscal year were worth Rs. 1.21 lakh crore. In 2014-15, only 26 percent of phones sold in India were made domestically. The country had just two mobile phone manufacturing units. (Today, roughly 97 percent of phones sold in India are made domestically, and there are over 300 manufacturing units)

2014-2020: The Make in India revolution

In September 2014, Prime Minister Narendra Modi launched Make in India. The Phased Manufacturing Programme (2017) imposed duties on imported components while incentivising local assembly. Mobile phone production jumped from $3.1 billion in 2014-15 to $24.3 billion in 2018-19, according to reports from the RBI and the financial sector. 

The game-changer arrived in April 2020 with the Production Linked Incentive (PLI) scheme, offering 4-6 percent incentives on incremental sales. This performance-linked structure drove remarkable results in just a few years.

2020-2026: India becomes the smartphone (especially iPhone) manufacturing hub

Thanks to the PLI Scheme and other initiatives, mobile phone production surged to Rs. 4.1 lakh crore in FY 2024-25, a 21x increase from 2014-15 (Rs. 18,900 crore). Exports jumped from Rs. 1,566 crore to Rs. 1.2 lakh crore, a 77x increase. The scheme created over 1.22 lakh jobs and attracted investments exceeding Rs. 9,100 crore.

Apple's transformation also aptly captures India's manufacturing revolution. In 2014, not a single iPhone was made in India. By 2025, India accounts for 15-20 percent of global iPhone production. In FY 2025, Apple assembled $22 billion worth of iPhones in India, with exports crossing Rs. 1.5 lakh crore (roughly $17.4 billion).

Taiwan's Foxconn committed over $1.5 billion to expand Indian operations, targeting production of 25-30 million iPhones in India by 2025, up from 12-13 million in 2024. The company's revenue in India exceeded $20 billion in FY 2024-25.

One of the biggest milestone was that Tata Group became the first Indian company to manufacture iPhones, acquiring Wistron's Karnataka facility in March 2024 for $125 million and a 60 percent stake in Pegatron in January 2025. Tata Electronics' revenues soared to Rs. 75,367 crore in the 15 months ending March 2025, more than five times the previous period.

Samsung's Noida plant, inaugurated in 2018, remains the world's largest mobile factory with 120 million units annual capacity. The company's India revenue crossed $11 billion (approx Rs. 1.11 lakh crore) in FY2025, with 42 percent from exports. Since its inception, the plant is said to have created over 15,000 jobs.

Chinese manufacturers Xiaomi, Vivo, Oppo and Realme collectively held over 58 percent of India's market as of March 2024. Vivo has opened a Rs. 3,000 crore facility in Greater Noida with 120 million devices annual capacity.

How far has India come?

Here are some stats that will blow your mind:

- Production grew from Rs. 1.9 lakh crore in 2014-15 to Rs. 9.52 lakh crore in 2024-25.

- In 2014, not a single iPhone was made in India. By 2025, India accounts for 15-20 percent of global iPhone production.

- Manufacturing units increased from 2 in 2014 to over 300 by 2024.

- Today, 97 percent of mobile phones sold in India are made domestically.

- The smartphone manufacturing sector employs over 1.2 million directly and 2.5 million indirectly.

- India now exports smartphones to over 70 countries.

- The country transformed from importing 74 percent of its phones in 2014 to exporting 30 percent of its production today.

What are India's goal in the future?

While the trajectory is strong, India still has a steep hill to climb. The India Semiconductor Mission, launched in 2021, aims to build a comprehensive chips ecosystem, bridging the gap of manufacturing the latest semiconductor technologies . Five projects have received approval with combined investment nearing Rs. 1.52 lakh crore. Micron Technology committed over $800 million towards a $2.75 billion semiconductor facility.

Challenges still remain. India still imports over 90 percent of critical components like semiconductors and displays. Infrastructure needs continuous improvement, and geopolitical tensions present both opportunities and risks.

This Republic Day, India's smartphone manufacturing success stands as testament to what can be achieved when vision, policy and execution align, even if it takes seven decades. As Indians check their smartphones today, devices increasingly carry the ‘Made in India’ stamp. They hold in their hands the fruits of a 75-year journey from dependence to self-reliance.

Published on: Tuesday, January 20, 2026, 04:27 PM IST