Xiaomi aligns with Budget 2026 push, says nearly 100% of phones, tablets now made in India

Xiaomi, the prominent Chinese smartphone manufacturer, has announced that nearly its entire range of products in India is now produced domestically. This move aligns with the Indian government’s Union Budget 2026 initiative focusing on increased localization and domestic value addition. In an interview, Sudhin Mathur, the Chief Operating Officer of Xiaomi India, highlighted the company’s commitment to enhancing its manufacturing capabilities over the past decade. "Almost 100% of our smartphones are manufactured in India, alongside all of our tablets and wearables. We are even producing some IoT products locally," Mathur stated. The Union Budget 2026 places a strong emphasis on advancing beyond mere assembly to establish more robust supply chains and higher product value within the country. Since initiating local manufacturing in 2014-15, Xiaomi asserts it is well-aligned with these strategic goals. According to Mathur, the company is now generating around 90% of its revenue from local sources, with domestic value addition reaching approximately 35%, excluding specific non-PCBA components. While Xiaomi has achieved significant localization, certain components are still imported, including camera modules and display panels. The company is actively exploring partnerships with local vendors to increase local sourcing of these parts. Mathur emphasized that Xiaomi is continuously assessing opportunities to expand its local manufacturing efforts across various product lines. As Xiaomi strengthens its manufacturing base, it is also gearing up for a strategic shift aimed at penetrating the premium market segment in 2026. This initiative, referred to as the "3-screen premiumization" strategy, encompasses a focus on enhancing the quality of their TVs, tablets, and other AIoT devices. "We aspire to be recognized as a high-tech company and have invested significantly in R&D, with nearly $10 billion spent over the last five years. We plan to double that investment in the coming five years," Mathur added. This transition signifies a move for Xiaomi from being primarily a smartphone brand to establishing a comprehensive ecosystem that includes smartphones, televisions, and tablets.