The government has received investment proposals worth Rs 1.10 trillion for manufacturing of electronics in the country during the year ended July 2015, with significant interest in handset production from both local and foreign firms. Over 80 per cent of the total investment proposals amounting to Rs 900 billion have been submitted during June 2015 and July 2015. The government has been promoting manufacturing in the country, especially electronics, through its ‘Make in India’ programme and the modified special incentive package scheme (MSIPS)

Smartphone manufacturers Samsung, Micromax and Spice have been assembling handsets in India. Recently, Xiaomi and Motorola have commenced assembling smartphones in the country through contract manufacturing by Foxconn and Flextronics, respectively. Firms like HTC, Asus and Gionee have also expressed interest in setting up their manufacturing base in the country.

According to the research firm CyberMedia Research, the share of smartphones manufactured or assembled in India as a percentage of total smartphones shipped has increased from 19.9 per cent for the quarter ended March 2015 to 24.8 per cent for the quarter ended June 2015.