India Mobile R&D Hub: HMD Global’s Vision for Global Innovation
The faint scent of solder hung in the air, a metallic tang that once symbolized mere assembly.
For decades, the narrative was clear: India was where things were put together, a land of hands meticulously combining components imported from distant shores.
Yet, within those bustling factories, something far more profound was stirring.
It was not just the rhythmic click of machinery; it was the quiet hum of innovation, of engineers wrestling with complex designs, of visionaries imagining products not just for the world, but from India.
This shift from simple manufacturing to sophisticated research and development marks a pivotal moment, transforming India from a production powerhouse into a true global R&D hub for mobile technology.
India is rapidly emerging as a global smartphone R&D hub, driven by domestic manufacturing growth, the Make in India initiative’s success, and a robust pool of engineering talent.
This transformation, exemplified by companies like HMD Global, positions India as a key player in product design, AI development, and device innovation for global markets.
Why This Matters Now: India’s Moment on the Global Stage
We are witnessing a monumental rebalancing of global supply chains.
As manufacturers prudently de-risk from an over-reliance on China, they are actively scouting for new technology hubs.
India stands ready, not just as an alternative, but as a compelling destination for innovation.
Consider the sheer scale of its transformation: in 2014, India boasted a mere two mobile manufacturing units.
Today, that number has surged to over 300 (PIB report, 2014).
This exponential growth is not just about quantity; it is about strategic significance.
The numbers tell a powerful story.
In 2023-24, while China and Vietnam, traditionally dominant electronics exporters, experienced declines of 2.78% and 17.6% respectively in their mobile phone exports, India’s exports soared by over 40% (AIM, 2024).
According to the International Trade Centre, China’s mobile phone exports dropped by $3.8 billion, and Vietnam’s fell by $5.6 billion.
In stark contrast, India gained an impressive $4.5 billion in exports during the same period, capturing nearly half of the combined decline from both nations (International Trade Centre, 2024).
This is not just growth; it is a strategic capture of global market share, underscoring India’s burgeoning role as a major electronics powerhouse.
The China+One Strategy: A Global Rebalancing Act
The concept of a “China+One” strategy has become a boardroom staple for global corporations.
It is a deliberate effort to diversify manufacturing and supply chains beyond China, mitigating geopolitical and economic risks.
This strategic shift has created an unprecedented opening for India.
As Karn Chauhan, a senior analyst at Counterpoint Research, observes, under this strategy, “one in five smartphones in the world is now made in India, and production is up by 11% in H1 2025” (AIM, 2025).
India’s mobile phone exports also saw a robust 25% year-on-year growth in Q3 2025, a momentum further solidified by Apple’s entry into India’s top five OEMs for the first time (AIM, 2025).
This growth is not without its challenges.
India still faces stiff competition from established players like China and Vietnam, which have long cemented their positions as global electronics export powerhouses.
As Chauhan wisely cautions, “India still needs time to build end-to-end component maturity.
China and Vietnam will continue to play key roles…
China will stay essential for deep components, tooling, and ecosystem scale during this transition” (AIM, 2024).
The path to becoming an R&D hub is a journey of gradual, not immediate, transformation.
Make in India and the Deepening Ecosystem
The Indian government’s “Make in India” initiative has been instrumental in cultivating a robust domestic manufacturing and supply-chain ecosystem.
This initiative has successfully spurred the local production of critical components and sub-assemblies, moving beyond basic assembly to more complex elements.
This includes chargers, battery packs, mechanics of all types, USB cables, and even advanced components like Lithium Ion Cells, speaker and microphone assemblies, display assemblies, and camera modules (AIM, 2024).
This deepening of the ecosystem is attracting global players and fostering new collaborations.
Suppliers like Salcomp and TXD are establishing significant operations in India.
New entrants are also arriving, with Foxconn-backed Yuzhan Technologies initiating pilot display production.
Even amid Press Note 3 restrictions, which require prior government approval for Foreign Direct Investment from countries sharing a land border with India, several China-India joint ventures like Bhagwati–Huaqin, Dixon–Longcheer, and Dixon–QTech are taking shape (AIM, 2024).
The electronic components manufacturing scheme is further poised to enhance local capabilities in PCBs, displays, camera modules, and enclosures, enabling Indian assemblers to forge stronger partnerships within the ecosystem.
HMD Global’s India-Led Innovation: A Case Study
At the forefront of India’s R&D evolution is HMD Global, the company behind Nokia phones and its new HMD brand.
What began as an India engineering team supporting global markets has blossomed into a full-stack capability encompassing product design, testing, AI development, and device innovation.
Ravi Kunwar, CEO and VP of HMD, India and APAC, highlights this evolution: “Some of these phones are not even sold in India, but all the testing happens here.
” He emphasizes that this is not a back-office operation but “core product development” (AIM, 2024).
HMD Global’s operations in India exemplify the nation’s rising potential.
The company leverages India’s deep STEM talent, speed of execution, and its diverse market as a perfect testbed for global hardware.
Kunwar asserts that “Making a product in India allows us to be globally competitive” (AIM, 2024), a testament to the Production Linked Incentive (PLI) scheme.
Currently, 95% of HMD’s products are locally manufactured, facilitating cost-competitive, high-quality exports to regions like the Middle East and Africa.
Furthermore, the Component Link Policy, with its Phase Two incentives, is strengthening HMD’s supply chain by pushing for localization of every component (AIM, 2024).
This commitment to India-led innovation is profound.
Beyond just testing, India now drives complete device development cycles for HMD, from industrial design and prototyping to software tuning and field performance validation.
As a direct result, two of HMD’s fastest-growing global devices, the HMD Vibe 5G and HMD Touch 4G, were entirely conceptualized, designed, and engineered in India before being taken to global markets (AIM, 2024).
This achievement places India among a select few nations—outside China, the US, South Korea, and parts of Europe—that can claim full-cycle smartphone creation capabilities.
Before A is H: A Human-First AI Philosophy
As the global smartphone industry shifts from a hardware-first to an AI-first paradigm, HMD Global, under India’s leadership, is championing a philosophy of meaningful, accessible innovation.
Kunwar encapsulates this with a memorable quip: “Before A is H,” elaborating, “Before Artificial Intelligence, we think Human Intelligence.
AI must be useful and grounded.
Not gimmicky” (AIM, 2024).
This human-first thinking is driving a new wave of device intelligence that does not demand flagship hardware or premium pricing.
Instead, the focus is squarely on solving real user problems for India’s vast mid-market user base.
This includes innovations for extended battery life, enhanced accessibility, reliable rural connectivity, and improved security, all powered by AI models optimized for more modest compute environments.
India, with its affordability-driven innovation culture, is proving to be the ideal birthplace for this practical, user-centric AI evolution.
Kunwar notes, “It’s not just assembly anymore; India is increasingly influencing the product roadmap itself” (AIM, 2024).
The Convergence of Hardware and AI
Smartphone players worldwide are rapidly re-architecting their organizations, bringing hardware and AI development closer together.
India is uniquely positioned as a natural location for this convergence, offering a strong confluence of advantages.
These include a deep AI and data-science talent pool, a burgeoning semiconductor and electronics ecosystem, cost-competitive engineering, a large and rapidly expanding 5G-ready consumer base, and crucial supportive policies such as the Production Linked Incentive (PLI) scheme and component incentives (AIM, 2024).
Kunwar sees this combination as transformative: “India is one of the few ecosystems where hardware and AI can be co-developed at scale.
This changes the game for global smartphone R&D” (AIM, 2024).
HMD’s Indian operations are now supporting markets across Southeast Asia, Australia and Oceania, the Middle East, and Africa, handling everything from 5G testing to AI camera tuning and device certification.
Remarkably, many of these globally launched devices, though not always sold in India, carry the indelible mark of Indian engineering (AIM, 2024).
Looking ahead, HMD plans to introduce innovations in the sub-₹1,000 segment “very shortly.
” This is significant, as the feature phone market remains substantial in India, with 55–60 million handsets sold annually, predominantly priced below ₹1,000 (AIM, 2024).
These upcoming devices will focus on delivering real value, such as enabling UPI transactions on low-cost phones, offering larger batteries for rural power outages, and providing protection against dust and water splashes.
Kunwar clarifies that a UPI feature on an ₹800–₹900 phone is “more than AI,” because the use case of seamless transactions is inherently more valuable (AIM, 2024).
By 2026, AI-enabled features are expected to extend to phones priced between ₹3,000 and ₹4,000, signaling continued innovation across the smartphone spectrum (AIM, 2026).
Playbook for Leveraging India’s R&D Prowess
For global tech companies and startups looking to tap into India’s growing R&D potential, here are actionable steps:
- First, align with the Make in India initiative and leverage PLI schemes.
Embrace the government’s push for domestic production and component localization to benefit from incentives and cost competitiveness.
HMD Global’s 95% local manufacturing highlights this advantage.
- Next, invest in India’s engineering talent.
India boasts a deep pool of engineers in hardware, AI, and system design.
Establish or expand R&D centers to harness this talent for product design, software tuning, and field performance validation.
- Adopt a human-centric AI philosophy.
Emulate HMD Global’s Before A is H approach by focusing on practical AI solutions for real user problems, especially in emerging markets, rather than just high-end gimmicks.
- Utilize India as a global testbed.
The diversity and scale of the Indian market make it ideal for rigorous product testing under complex, real-world conditions.
This provides invaluable feedback for devices destined for other global markets.
- Foster joint ventures and strategic partnerships.
Navigate the regulatory landscape, including Press Note 3 restrictions, by forming strategic alliances with Indian companies to deepen component manufacturing and expand ecosystem capabilities.
- Prioritize end-to-end device development.
Move beyond merely assembly to lead full product cycles, from industrial design to AI framework development.
This shifts the focus towards intellectual property and product innovation.
- Finally, develop for the affordability spectrum.
Acknowledge and innovate for India’s vast mid-market and feature phone segments.
Delivering robust, AI-enabled features in budget-friendly devices is key to unlocking massive market potential.
Risks, Trade-offs, and Ethical Considerations
While India’s rise as an R&D hub is promising, challenges remain.
- Component Maturity: Karn Chauhan notes that India still needs time to build end-to-end component maturity.
Relying heavily on external ecosystems for deep components can create supply chain vulnerabilities.
Strategic investment in semiconductor supply and advanced manufacturing capabilities is crucial.
- Regulatory Landscape: Policies like Press Note 3, while aimed at national security, can complicate foreign direct investment and partnership formations.
Companies must navigate these restrictions carefully, often requiring prior government approval.
- Competition: Despite India’s growth, China and Vietnam remain formidable electronics export powerhouses.
Maintaining a competitive edge will require continuous innovation, efficiency, and a clear differentiation strategy.
- Talent Retention: While India has a deep talent pool, competition for skilled engineers in AI and hardware design is intense.
Strategies for attracting, developing, and retaining top talent are critical for sustained R&D leadership.
- Ethical AI Development: As India leads in accessible AI, there’s an inherent responsibility to ensure these innovations are developed ethically.
Prioritizing user privacy, data security, and avoiding algorithmic bias, especially in widely adopted technologies like UPI, is paramount.
Tools, Metrics, and Cadence for R&D Leadership
To solidify India’s position as a mobile R&D hub, a structured approach to innovation management is vital.
Practical Tools
Practical Tools include advanced CAD/CAM software for industrial design and prototyping.
Utilize AI/ML development platforms for training and optimizing AI models.
Employ robust hardware durability testing equipment and field performance validation tools.
Implement secure data management systems for intellectual property protection.
Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs) track the number of India-designed products launched globally.
Monitor the percentage of components locally sourced.
Measure R&D investment as a proportion of revenue.
Evaluate patent applications and intellectual property generated from India-based R&D.
Track the average time-to-market for India-led innovations.
Review Cadence
Review Cadence should be structured for effectiveness.
Conduct weekly R&D sprint reviews to monitor project progress and address immediate technical challenges.
Monthly leadership meetings should review overall R&D pipeline health, budget adherence, and alignment with market trends.
Quarterly strategic planning sessions should reassess technology roadmaps, evaluate new market opportunities, and consider geopolitical shifts impacting supply chains.
An annual comprehensive review should measure the impact of India-led R&D on global competitiveness and long-term growth.
FAQ: Your Guide to India’s Mobile R&D Scene
How has India’s mobile manufacturing sector grown?
India has grown from just 2 mobile manufacturing units in 2014 to over 300 units today, indicating significant expansion in domestic production (PIB report, 2014).
What is the ‘China+One’ strategy and how does it benefit India?
The ‘China+One’ strategy refers to companies diversifying their supply chains away from China.
This has led to India manufacturing one in five global smartphones and seeing a 40%+ export growth in 2023-24, capturing nearly half of China’s and Vietnam’s combined export decline (Counterpoint Research, International Trade Centre, 2024).
What role does HMD Global play in India’s R&D ecosystem?
HMD Global’s India engineering team has evolved into a full-stack capability for product design, testing, and AI development for global markets.
They conceptualized and engineered devices like the HMD Vibe 5G and HMD Touch 4G in India, influencing the global product roadmap (AIM, 2024).
What is HMD Global’s AI philosophy?
HMD Global follows a ‘Before A is H’ (Before Artificial Intelligence, Human Intelligence) philosophy, focusing on meaningful, accessible AI that solves real user problems like battery life, accessibility, and security on affordable devices, rather than being gimmicky (AIM, 2024).
What are India’s key advantages in becoming a global R&D hub?
India offers a deep AI and data-science talent pool, a growing semiconductor ecosystem, cost-competitive engineering, a large 5G-ready consumer base, and supportive policies like the Production Linked Incentive (PLI) scheme and component incentives (AIM, 2024).
Conclusion: India’s Unstoppable Momentum in Mobile R&D
The faint scent of solder still lingers, but now it blends with the unmistakable aroma of innovation – the scent of intellectual property taking shape, of product roadmaps being rewritten, and of a nation asserting its strategic intelligence on the global stage.
India is no longer just building phones; it is designing their very future, from affordable feature phones to cutting-edge AI-enabled smartphones.
This transformation, driven by local talent and a human-first philosophy, is not just about economic growth; it is about empowerment, access, and redefining what it means to be a global technology leader.
India’s momentum is palpable, unstoppable.
Are you ready to innovate with it?
References
- AIM. “India Could Become the World’s Mobile R&D Hub—HMD Global Explains Why.” 2024.
- International Trade Centre. 2024.
- PIB. “PIB report.” 2014.
- Counterpoint Research. 2025.
Glossary
- AI in Smartphones India: The development and integration of artificial intelligence features and capabilities specifically for mobile devices within India.
- China+One Strategy: A business strategy where companies diversify their supply chain by adding at least one manufacturing or sourcing location outside of China.
- Hardware AI Convergence: The trend of tightly integrating hardware and artificial intelligence development to create more efficient and powerful devices.
- Make in India: A government initiative designed to encourage companies to manufacture their products in India and incentivize foreign direct investment.
- Mobile Exports India: The shipment of mobile phones and related components manufactured in India to international markets.
- Semiconductor Supply India: The availability and ecosystem for the design, manufacturing, and distribution of microchips and electronic components within India.
- Smartphone Manufacturing India: The process of producing smartphones, from component sourcing to final assembly, within India.