A major strategic realignment is unfolding in India’s electronics and smartphone sector. Chinese companies, once focused solely on tapping the Indian market for sales, have now begun leveraging India as a global export hub. With smartphones and electronics being shipped from India to West Asia, Africa, and even the United States, the country is beginning to cement its role in the global supply chain. This marks a significant milestone for the Indian government’s ‘Make in India’ initiative.
Credits: The Times of India
From Import Base to Export Powerhouse
Historically, most international markets were served through manufacturing units in China and Vietnam. Indian operations of Chinese smartphone companies were primarily aimed at local sales. However, with rising geopolitical tensions, cost optimization, and government encouragement, that model is changing. Today, India is emerging as a key export base not only for domestic consumption but also for global distribution.
This transformation is being seen as a significant policy win. Government measures — both formal and informal — have nudged Chinese firms to increase their local value addition and gradually shift their global supply strategy.
Nudges That Moved the Needle
After the 2020 India-China border standoff, the Indian government ramped up scrutiny of Chinese companies operating in India. While it did not ban operations outright, it is believed to have delivered informal advisories encouraging:
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Local partnerships with Indian firms,
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Setting up distribution channels owned by Indian entities,
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Hiring Indian nationals in leadership positions,
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And importantly, using India as a manufacturing base for exports.
These advisories were accompanied by more formal measures like PLI (Production-Linked Incentive) schemes that offered financial incentives for increasing local production and exports.
Export Numbers Tell the Story
The shift in strategy is now reflecting in financial statements. Chinese smartphone brands like Oppo and Realme have reported meaningful export earnings for FY24:
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Oppo Mobiles India reported ₹272 crore in foreign exchange earnings through exports.
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Realme Mobile Telecommunications (India) generated ₹114 crore in export revenue, according to filings with the Registrar of Companies in May.
Although still early days, these numbers indicate a growing trend and could pave the way for much larger export volumes in the coming years.
Chinese Brands Scaling Up in India
Several other Chinese-origin brands are now doubling down on exports from India. For example:
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Lenovo Group has initiated plans to export laptops and servers from its Indian units.
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Motorola, a Lenovo subsidiary, is already exporting smartphones to the US.
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Dixon Technologies, which manufactures for Motorola and Transsion Holdings (owners of Itel, Tecno, and Infinix), plans to increase production capacity by 50% to meet export demand.
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Haier, known for its refrigerators and washing machines, is also exploring international shipment possibilities from India.
These developments are not isolated but rather form part of a broader strategic shift where global electronics companies are reassessing India’s role in their manufacturing and supply chain frameworks.
The Indian Face in Leadership — Still Missing
One area where progress is still limited is leadership localization. Despite the government’s push, most Chinese firms have yet to appoint Indian nationals as managing directors or CEOs. Senior leadership remains largely Chinese, though there is growing Indian representation on company boards and in operational management roles.
This aspect may see more traction in the coming years as companies adapt further to local norms and regulatory expectations.
Credits: trak.in
Conclusion: India’s Moment in Global Electronics
Chinese businesses’ decision to export from India shows that the nation is not just a viable and competitive global manufacturing hub, but also a promising consumer market. With programs like “Make in India” and PLI subsidies, the Indian government’s long-term ambition is amply supported.
India stands to gain a great deal from the diversification of global supply chains away from China, including the creation of jobs, higher foreign exchange revenues, and improved indigenous capabilities.
