India has approved a joint venture between Chinese smartphone giant Vivo and local manufacturer Dixon Technologies, marking a significant step in the country's smartphone manufacturing growth.

This partnership, which allows Vivo to manufacture smartphones in India and produce electronics for other brands, reflects a strategic shift by Chinese firms to deepen their presence in the Indian market through local collaborations.

The 51/49 ownership structure, with Dixon holding the majority stake, aligns with India's push for greater domestic participation in electronics manufacturing.

Analysts suggest this model could become a template for similar ventures, helping Chinese brands expand exports from India akin to Apple's success.

While Chinese brands dominate India's smartphone sales (72% market share), they contribute less than 10% of exports, highlighting potential growth opportunities.The deal also addresses regulatory challenges stemming from India's tightened investment rules post-2020 border clashes with China.

Dixon, India's largest electronics manufacturing services company, could see annual smartphone production volumes increase by 20-22 million units through this partnership, further solidifying its role as a key manufacturing partner for global and Chinese brands in the region.