Demand for India-manufactured smartphones and electronic devices is rapidly increasing in global markets. Chinese companies like Oppo, Realme, and Hisense are now manufacturing in India and exporting to markets such as West Asia, Africa, and America.
New Delhi: India is rapidly transforming from a large consumer market into a global manufacturing hub. Major Chinese mobile and electronics companies have commenced large-scale production in India and are now exporting their "Made in India" products to international markets. This is benefiting India through job creation, foreign exchange earnings, and technological advancement.
Following the 2020 India-China border tensions, the Indian government imposed certain restrictions on Chinese companies while simultaneously incentivizing investment and production within the country. The results are now evident, with companies like Oppo, Realme, Hisense, Lenovo, and Motorola not only establishing manufacturing centers in India but also exporting their products to major markets in West Asia, Africa, and America.
Oppo and Realme Earn Crores from Indian Exports for the First Time
In fiscal year 2024, Oppo Mobile India earned ₹272 crore (approximately $33 million USD) in foreign exchange through exports from India for the first time. Similarly, Realme exported goods worth ₹114 crore (approximately $14 million USD). These figures are based on information submitted to the Registrar of Companies.
Previously, these companies primarily sold their phones within India. Now, with the "Made in India" tag, they are gaining international recognition. Their phones are proving popular with consumers in West Asia, Africa, and America.
Hisense to Manufacture TVs in India, Commence Exports
Hisense, another major Chinese company and a leading manufacturer of televisions and home appliances, is planning to export TVs and home appliances from India to West Asia and Africa. Hisense's production partner, Apac Durable, is establishing a new plant in Sri City (Andhra Pradesh) at a cost of ₹100 crore (approximately $12 million USD). This plant will adhere to Chinese manufacturing standards.
Motorola, Lenovo, and Dixon Technologies Also Contributing
Lenovo Group is planning to export servers and laptops from India. Its mobile unit, Motorola, is already exporting mobile devices to the United States. Motorola smartphones are manufactured in India by Dixon Technologies.
Dixon is increasing its production capacity by 50% to meet growing international demand. Dixon Technologies also manufactures smartphones for Transion Holdings, the parent company of brands like Tecno, Infinix, and Itel.
Transion Holdings has begun exporting to Africa, where their affordable smartphones are highly sought after.
Impact of Indian Partnerships and Government Policies
The Indian government has made it clear that Chinese companies wishing to operate in India must also manufacture within the country. Furthermore, they have urged Chinese companies to collaborate with Indian partners to establish manufacturing units, appoint Indians to senior positions, and view India not just as a market, but as a production base.
The impact of this policy is now visible. Chinese companies are collaborating with Indian companies for production. Brands are working with Dixon Technologies, Apac Durable, and other manufacturing partners to produce in India.
PLI Scheme Providing Further Incentives
India's Production-Linked Incentive (PLI) scheme is also proving beneficial to these companies. While most Chinese companies are not directly participating in the scheme, their contract manufacturers like Dixon are beneficiaries. This is enabling them to increase production and explore new export opportunities.
Influence of US Tariffs and Geopolitical Tensions
The threat of US tariffs on China and the growing global anti-China sentiment have also driven these companies to seek alternatives like India. India's political stability, growing manufacturing capacity, and pro-industry government policies have made it a b alternative to China.
Several Chinese companies are now poised to export mobile and electronic products from India to the US. However, trade agreements with the US and global conditions will play a significant role.
Shifting Focus from China to India
It's safe to say that many Chinese companies are considering India as their new manufacturing base. The primary reasons are India's growing consumption, government support, labor availability, and improved logistics networks. Additionally, rising wages and political risks in China are prompting companies to diversify their production centers.
India's Increasingly Crucial Role in the Future
The surge in exports of mobile and electronic products from India is expected to grow further in the coming years. If the government expands the PLI scheme and encourages Chinese companies to conduct R&D in India, India could become a center not only for production but also for innovation.
Thus, the global acceptance of "Made in India" Chinese phones and electronic products is emerging as a major economic opportunity for India. This will not only boost foreign exchange but also create millions of jobs.
