India has approved the long-awaited joint venture between Dixon Technologies and Vivo Mobile India, clearing the way for the two companies to manufacture smartphones in India, according to an exchange filing. The approval is significant because it is one of the biggest clearances given to a Chinese smartphone company since India tightened its foreign investment rules in 2020.
Following the government’s nod, both companies have signed the Joint Venture Agreement and Shareholders’ Agreement to set up a new company that will manufacture smartphones and other electronic devices in the country on an original equipment manufacturer (OEM) basis, subject to standard regulatory conditions.
Under the agreement, Dixon Technologies will own 51% of the joint venture, while Vivo Mobile India will hold the remaining 49%, giving the Indian company majority control. The two partners will initially invest ₹5 crore as paid-up share capital, in proportion to their ownership. Reports also suggest the venture could eventually support smartphone manufacturing worth around ₹30,000 crore, making it one of the largest partnerships in India’s electronics manufacturing sector.
The approval was granted under Press Note 3, the policy introduced by the Indian government in April 2020 that requires prior approval for investments from countries sharing a land border with India, including China. Since the rule came into effect, Chinese investments have undergone detailed security and regulatory scrutiny, making approvals slower and more selective.
The joint venture is a major milestone for Dixon Technologies, India’s largest electronics manufacturing services (EMS) company. Founded in 1993, the company operates 17 manufacturing facilities across the country and manufactures products like smartphones, televisions, laptops, washing machines, lighting products and security devices. It already manufactures electronics for several global brands, including Google, Motorola, Samsung, Xiaomi, Nokia, Philips and boAt. Over the past few years, Dixon has expanded rapidly by benefiting from the government’s ‘Make in India’ initiative and the growing trend of global brands outsourcing manufacturing to Indian companies.
Meanwhile, for Vivo, the approval strengthens its manufacturing presence in one of its biggest global markets. India is among the world’s largest smartphone markets, and local production has become increasingly important as the government encourages companies to manufacture within the country through initiatives like the Production-Linked Incentive (PLI) Scheme.
Importantly, manufacturing smartphones locally helps companies reduce import dependence, lower logistics costs, improve supply chain efficiency and respond faster to domestic demand. The development also comes as India continues to strengthen its position as a global smartphone manufacturing hub. At present, global brands like Apple, Samsung, Google, Motorola, Xiaomi, Oppo and Vivo manufacture devices in the country through their own factories or local contract manufacturers.