India has approved a manufacturing joint venture between Chinese smartphone maker Vivo and Indian electronics manufacturer Dixon Technologies, marking another significant step in the country’s drive to strengthen local smartphone production.

The approval follows regulatory clearance under investment rules introduced in 2020, which require additional government scrutiny for investments from countries that share land borders with India, including China.

The new partnership will see Dixon hold a 51 percent majority stake, while Vivo will own the remaining 49 percent.

Under the agreement, the venture will acquire selected manufacturing assets from Vivo and produce smartphones for the company within India.

The facility will also have the capacity to manufacture electronic products for other brands, expanding its role in the country’s growing electronics sector.

Industry analysts believe the arrangement could become a model for future collaborations between Chinese technology firms and Indian manufacturers.

As India encourages greater domestic participation in manufacturing, partnerships that give local companies majority ownership are increasingly viewed as a practical approach to balancing foreign investment with national economic priorities.

India has rapidly established itself as a major global smartphone manufacturing hub, largely due to Apple’s expansion of iPhone production through partners such as Foxconn and Tata.

Government incentive programmes have further strengthened the country’s position in global supply chains, while Chinese smartphone brands continue to dominate India’s domestic market despite contributing a relatively small share of exports.

For Dixon Technologies, the agreement is expected to significantly increase production capacity by adding an estimated 20 to 22 million smartphones annually based on Vivo’s current sales volumes.

The company already manufactures devices for Xiaomi, and the latest partnership further strengthens its position as one of India’s leading electronics manufacturing service providers.

Source: TechCrunch