Embrace a Swadeshi Diwali: Celebrate with Phones, Gadgets, and Khadi

A decade ago, the concept of swadeshi was synonymous with khadi fabric and traditional handicrafts. This Diwali, however, the idea has evolved, represented by modern symbols like a family SUV from Pune, an iPhone 17 assembled in Bengaluru, and a Philips air fryer marked as ‘Made in India’.

With rising tariffs and geopolitical tensions creating a climate of uncertainty, Prime Minister Narendra Modi has encouraged citizens to adopt swadeshi during this festive season. He stated that “India’s biggest adversary is its dependence on other nations.”

This year, Diwali sales are projected to hit a record high of Rs 4.75 lakh crore, significantly fueled by Indian-made products. The new GST reforms supporting micro, small, and medium enterprises (MSMEs) have spurred a shift toward domestically manufactured goods. Praveen Khandelwal, secretary-general of the Confederation of All India Traders (CAIT), emphasizes this sentiment.

“Every purchase of Indian-made items is not just a festive gesture; it strengthens the economy and supports small traders,” he explained. “The trading community is committed to ensuring swadeshi products are accessible in every shop, establishing them as the only alternative to foreign goods.”

The appeal of swadeshi gains momentum, especially with sought-after products like the latest iPhone proudly bearing the ‘Made in India’ label. A few years ago, India was predominantly an import market. According to Canalys, locally assembled devices now account for 44% of U.S. smartphone imports, up from just 13% last year.

Apple is at the forefront of this transformation. Historically reliant on China for iPhone production, it reportedly now manufactures one in five iPhones in India. In FY25, Apple assembled devices worth $22 billion in India, marking a 60% increase from FY24, with around 80% of these exports.

Korean giant Samsung has also bolstered its manufacturing presence in India, which began in 1996 with its Greater Noida facility. Initially focused on TVs, the company now produces mobile phones, laptops, and wearables, operating the second-largest mobile manufacturing unit globally in India.

While smartphones grab headlines, the demand for white goods reveals a significant trend. “This year, we’re witnessing a growing preference for high-quality, innovative products, with increasing pride in those made locally,” said Shibashish Roy, CEO & MD of Croma.

LG Electronics, a leader in consumer durables, operates two manufacturing plants in Noida and Pune, producing a wide range of devices, from refrigerators to washing machines. Additionally, a new facility is set to open in Andhra Pradesh by 2026, further establishing India as a critical manufacturing hub for the company.

“While domestic demand remains strong, we aim to position India as an alternative manufacturing base for export markets,” noted Sanjay Chitkara, LG’s chief sales officer. The company’s exports currently represent 6% of its revenue, reaching 47 countries and growing by 45% in the last year.

Home Minister Amit Shah’s remarks at the recent FE Best Bank Awards echo this sentiment: “We launched the Make in India initiative as a movement, inviting world-class companies to not just sell here but manufacture as well, thereby rooting themselves within our economy and workforce.”

Companies are increasingly responding to this call. Schneider Electric, for instance, prioritizes local manufacturing, with 80-85% of its retail portfolio produced in India. The company operates 31 manufacturing sites in the country and intends to expand this presence. Sumati Sahgal, VP of home & distribution retail at Schneider, highlighted the growing demand for swadeshi products this festive season.

At Panasonic, the push for local manufacturing is visible in new product launches and strengthened supply chains. “We anticipate significant growth this festive season, with demand likely to rise by 25-30% compared to last year,” stated Fumiyasu Fujimori, managing director of Panasonic Marketing India. Versuni, owner of Philips appliances, has launched a new manufacturing plant in Ahmedabad for air fryers and steamers.

The automobile sector stands out as a strong representative of local manufacturing. Maruti Suzuki, India’s largest car manufacturer, produces 2.6 million cars annually. “We achieved our highest monthly export figure of 42,204 units in September, which is a remarkable 52.2% increase from the previous year,” reported Rahul Bharti, senior executive officer at Maruti Suzuki.

Other car manufacturers are also showing impressive growth. In FY25, Honda exported 60,229 units, while Nissan’s exports soared to 71,334 units, up from 42,989 a year earlier. Overall, around 770,300 cars were exported in FY25, compared to 672,105 in FY24.

Various manufacturers are stepping up their production efforts. “We’ve reached a localization rate of 82% on average, with many advanced parts sourced locally,” said Tarun Garg, MD and CEO-designate at Hyundai, which aims to make India its second-largest market globally.

Skoda Auto Volkswagen also recognizes the significance of India’s manufacturing capabilities. “Almost 90% of the cars we sell in India are locally produced,” shared Piyush Arora, CEO & MD, further emphasizing the importance of the local ecosystem in achieving both domestic and export objectives.

Furthermore, Mahindra & Mahindra is deepening its footprint with new models and a 60% surge in registrations during Navratri, while Tata Motors has reported significant sales growth with 60,907 passenger vehicle deliveries in September.

Electric vehicle manufacturer Greaves Electric Mobility has also seen increasing demand for its homegrown products, further reflecting the shift toward domestic manufacturing.