India's Smartphone Economy
The Components Challenge
Why India mostly assembles phones from imported components, what makes up a phone's value, and the 2025 Electronics Component Manufacturing Scheme.
India mostly assembles phones from imported components.
What’s in a phone
- Chips (processors, memory).
- Display panels.
- Camera modules.
- Batteries and chargers.
- Printed circuit boards.
Where value lies
Chips and displays are the most valuable parts, mostly made in China, Taiwan, Korea and Japan.
Local value
India’s value added in phones remains relatively low, though rising.
New scheme
In 2025, India launched the Electronics Component Manufacturing Scheme to support making components.
Chinese suppliers
India restricts Chinese investment, but some component makers need Chinese joint ventures.
An India-made phone's chip comes from Taiwan, its display from Korea and its camera from China.
Components hold most value.
- India mostly assembles phones.
- Chips and displays hold most value.
- Local value added is rising.
- A component scheme launched in 2025.
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