Chinese Brands Now Shipping ‘Made in India’ Devices to the U.S. and West Asia

India’s electronics manufacturing sector has witnessed a major turning point, with Chinese smartphone brands now exporting “Made in India” devices to high-demand international markets like the United States and West Asia. This shift not only signals India’s growing role in the global electronics supply chain but also reflects the changing dynamics of China-India manufacturing interdependence, driven by geopolitical, economic, and strategic factors.

The Rise of India as a Manufacturing Base

Once heavily reliant on China for smartphone production, leading Chinese brands such as Xiaomi, Realme, and Vivo are now leveraging their production lines in India to meet international demand. For years, India has been seen as a massive consumption market, but it is increasingly becoming a vital export hub—especially for consumer electronics and smartphones.

According to data from the India Cellular and Electronics Association (ICEA), smartphone exports from India nearly doubled in FY 2024, touching over ₹1.2 lakh crore ($15 billion), up from ₹70,000 crore the previous year. A significant contributor to this rise has been the export activities of Chinese brands assembling products in India under contract manufacturing models.

Why Chinese Brands Are Exporting from India

Several converging trends explain why Chinese smartphone companies are now pushing exports from India:

1. Geopolitical Tensions and Trade Restrictions: Growing trade tensions between the U.S. and China have led to increased scrutiny of Chinese-origin goods. By manufacturing in India, Chinese brands avoid potential tariffs and political barriers in Western markets.
2. PLI Scheme (Production-Linked Incentive): The Indian government’s PLI scheme for electronics manufacturing offers financial incentives to companies manufacturing and exporting from India. Chinese OEMs (Original Equipment Manufacturers) have tapped into this, establishing or scaling up production capacity.
3. Diversification Strategy: China’s dominance in electronics manufacturing is being balanced as companies adopt a “China Plus One” strategy. India—with its improving infrastructure, skilled labor force, and policy support—has emerged as a logical alternative.
4. India’s Infrastructure and Ecosystem Growth: Over the past five years, India has developed a more robust electronics manufacturing ecosystem, especially in regions like Noida, Tamil Nadu, and Karnataka. Contract manufacturers like Dixon Technologies and Bharat FIH (Foxconn’s Indian arm) are supporting global supply chains from Indian soil.

Which Markets Are Receiving Made-in-India Phones?

Chinese brands are primarily targeting:

• United States: While the U.S. market remains competitive and sensitive to security concerns around Chinese tech, low- to mid-range devices assembled in India under neutral branding or through contract partners are seeing growing demand, especially through e-commerce platforms and regional distributors.
• West Asia (Gulf Cooperation Council countries): These include the UAE, Saudi Arabia, and Qatar, where there is strong demand for budget-friendly and feature-rich Android phones. “Made in India” phones offer a cost advantage over Chinese-made devices due to favorable trade terms and faster logistics.
• Africa and Latin America: Although not the primary focus, India-based production has started serving price-sensitive markets in Africa and Latin America, where the demand for durable, affordable smartphones continues to grow.

Examples of Export Activity

• Xiaomi: One of the earliest Chinese brands to localize its manufacturing in India, Xiaomi has begun exporting its Redmi and Poco series smartphones from facilities in Uttar Pradesh to countries like Nepal, the UAE, and Colombia.
• Realme: A sub-brand of BBK Electronics (which also owns Oppo and Vivo), Realme has shipped India-assembled phones to Egypt and Saudi Arabia, emphasizing affordability and youth-oriented design.
• Vivo: Recently scaled its India operations and announced plans to export a larger portion of its India-made devices to the Middle East and Africa, with future targets including Europe and Latin America.
• Transsion Holdings (makers of Tecno and Infinix): Though less well-known in India, they are heavily focused on African markets and have already turned India into one of their major production hubs for export.

Challenges Ahead

Despite the growth in exports, several hurdles remain:

• Supply Chain Depth: While final assembly is happening in India, many critical components—such as chipsets, displays, and batteries—are still imported, limiting value addition.
• Skilled Labor & Automation: Scaling up requires not just labor but a skilled workforce capable of managing advanced robotics and precision assembly, areas where China still leads.
• Regulatory Environment: Export logistics, customs delays, and occasionally inconsistent policy implementation at state and central levels can deter manufacturers.
• Data Security and Trust Issues: Especially for the U.S. market, Chinese brands may still face scrutiny regarding data privacy and national security concerns, even if the device is assembled in India.

Government’s Role & Future Outlook

The Indian government is keen to make the country a global manufacturing powerhouse. In addition to the PLI scheme, initiatives like Make in India, the National Policy on Electronics (NPE), and ongoing investment in logistics infrastructure are paving the way for sustained growth.

In fact, the Ministry of Electronics and IT (MeitY) aims to scale electronics exports from the current $25 billion to $120 billion by 2026, with smartphones being a major driver. If component manufacturing also scales up, India could evolve from an assembly hub to a truly end-to-end electronics producer.