(Last Updated On: July 18, 2015)

More and more smartphone brands are now either setting up their own smartphone manufacturing plants in India or are outsourcing the phone manufacturing business to some other product manufacturing firm in India.

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According to an ET report, Microsoft Mobiles is also planning to get its Lumia smartphones made in India via Foxconn– the leading contract manufacturer.

As per the report, Foxconn will manufacture Microsoft Lumia smartphones in its factory located at Sri City in Andhra Pradesh.

Various sources confirmed that Foxconn will make 2 models of Microsoft Lumia in its Sri City plant. It is worth noting that uptil now, Microsoft is meeting the demands of the Indian market by importing phones made in China, Vietnam, and Finland.

Who Else Would Be Making Phones in India?

With this report, Microsoft joins various other companies who are either making their phones in India or plan to do so very soon.

Some of the popular smartphone brands who are participating in the ‘Make In India’ campaign are Xiaomi, Gionee, LG, Lenovo, Micromax, Lava, Spice, and Oppo.

It is believed that the main driving force behind the Make In India plans of various brands is the 12.5% hike in Excise duty. The hike will benefit domestic manufacturers and hence the various international firms are planning to set up their phone manufacturing hubs in India.

Many local smartphone players have also started to assemble their phones in India instead of importing completely finished phones from China, as a result of this hike.

Terry Gou, Chairman of Foxconn Technology Group revealed during his recent India visit that his company plans to invest $2 billion to set up 10-12 factories across the country with initial plans for Maharashtra, Andhra Pradesh, and Gujarat.

On the other hand, Microsoft declined to confirm these reports. The new Foxconn factory is established in a rented building in the Sri City. Foxconn is using this factory for assembling phones for Xiaomi and InFocus.

“From their recent announcement, it appears Microsoft doesn’t want to remain deeply invested in the hardware business, but create an ecosystem of players surrounding the Windows 10 and be a driver of technology ,” said Anshul Gupta, Director at Gartner.

We all are looking at an interesting time for the Indian smartphone industry when various popular brands would be making their devices in India and sell them at a comparatively cheaper price. We just hope that they won’t compromise on the build quality or this whole ‘Make In India’ campaign would be a waste for the buyers.

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