The India Mobile Congress this week draws attention to the opportunity for expansion in the country’s mobile phone industry. India is the world’s second largest market (after China) for selling new phones, according to The Economist, with 30 million consumers buying phones each quarter and a penetration rate of just over 20% vs. around 50% for China.

The government is keen to ensure that meeting that need results in increased economic activity in India, and not just higher imports. The India Cellular Association believe there will be as many as 1,500 factories building handsets by 2020, from 104 now the Economics Times reports.

That trend already appears to be starting. Panjiva data shows imports of completed handsets fell 53.9% on a year earlier in the three months to July 31. By contrast imports of components (for phones and network gear) has climbed to 56.1%, and exceeded $1.0 billion for the first time in July. The build-out of the Indian network, and need for local production there too, can be seen in the 47.7% growth in network gear.

Chart compares Indian imports of mobile phones, network gear and components. Source: Panjiva

Panjiva analysis of over 350 consignee-country pairs shows the biggest importer of completed handsets is Apple, at $990 million in the past 12 months, followed by Lenovo and Reliance Jio. Going forward Apple may start to have its handsets produced in India instead with partner Wistron, though that may be in doubt, Mint reports. Among the manufacturers Foxconn (via its local subsidiary Rising Stars) at $1.92 billion followed by Vivo and Oppo. Unsurprisingly China is the main supplying country, though Samsung also imports 14% of its parts from Vietnam.

Chart segments Indian imports of mobile phones by consignee (blue) and imports of components for phones and networks by consignee and country of origin. Source: Panjiva