HMD Global shifts smartphone production from China to India
HMD Global, the Finnish giant behind Nokia-branded phones, is moving a major chunk of its manufacturing from China to India. The move comes as part of HMD's plan to make India a global production hub and capitalize on changing geopolitical dynamics. The company is asking its international suppliers to set up bases in India, to aid its expanding export ambitions.
HMD Global's CEO confirms shift to India
HMD's CEO and VP for India and Asia Pacific, Ravi Kunwar, has confirmed the shift. He said, "A bulk of what we used to do out of China is being moved to India, whether it is our supply chain, sourcing or logistics hub." The move comes as part of a gradual process to strengthen HMD's presence in India and boost its export strategy.
HMD Global's transition influenced by US-China trade tensions
The ongoing trade tensions between US and China, especially the prospect of stricter tariffs under Trump administration, have prompted HMD to move operations. Kunwar said their export percentage from China is reducing while India is gaining the favor. However, he said a complete shift from China isn't on the cards and will depend on how competitive India becomes as a destination.
HMD Global's existing operations and future plans in India
HMD has already shifted critical operations, including its supply chain sourcing team, to India. The company already exports Nokia feature phones and smartphones to West Asia and Africa from its Indian facilities. Going forward, HMD plans to expand exports to the US and Europe amid changing global security and supply chain priorities.
HMD Global urges component makers to set up in India
HMD is pushing component makers to set up factories in India. Kunwar believes these manufacturers see the potential of domestic consumption and export opportunities in India. He stressed a clear government policy is the key to this transformation, adding that the Ministry of Electronics and Information Technology (MeitY) is working on a scheme for electronics component manufacturing worth ₹40,000 crore.
