Swedish telecommunications equipment maker Ericsson is stepping up its localisation strategy in India, aiming to turn the country into a more important manufacturing, export and research hub for its global business. The company is working with the Indian government to encourage component suppliers to establish manufacturing facilities locally, while expanding production and exports through partnerships with Indian companies. The strategy could strengthen domestic supply chains and increase the value of telecom equipment manufactured in India.
The move goes beyond supplying equipment to Indian telecom operators. Ericsson has already produced more than 15,000 antennas and 25 million components in India since July 2025, and India-made antennas are being exported to Europe and other global markets. The company is also expanding engineering and semiconductor-design capabilities, positioning India as a contributor to its international technology operations rather than simply a large customer market. (Economic Times, Ericsson)
Ericsson Wants More Telecom Components Made in India
Ericsson is assessing the components it requires for its telecommunications equipment and identifying which can be manufactured in India. CEO Andres Vicente told The Economic Times that the company has approached suppliers to explore the possibility of setting up local production facilities.
The company is willing to support suppliers in this process, but the final decision to establish manufacturing operations rests with those businesses. This distinction is important: Ericsson is encouraging localisation across its supply chain, but it has not announced that every component will be manufactured domestically.
The approach could gradually expand India’s role in telecom equipment production. Manufacturing complete products locally is one step; developing a network of domestic suppliers for components, materials and related services can increase the amount of value created within the country.
For India, this could mean additional industrial investment, demand for skilled manufacturing workers and opportunities for smaller technology suppliers. For Ericsson, local sourcing could help diversify supply chains and strengthen its ability to serve Indian and overseas customers from a broader production base.
India Becomes an Export Base for Ericsson
Ericsson is already manufacturing telecommunications equipment in India and expanding exports. The company works with Gurugram-based VVDN Technologies to manufacture antennas, including products intended for international markets such as Europe.
On October 7, 2026, Ericsson announced that its growing Indian manufacturing ecosystem had produced more than 15,000 antennas and 25 million components since July 2025. The company said India-manufactured antennas were being exported to Europe and other global markets. (Ericsson press release)
These antennas support modern mobile networks, including technologies used for massive multiple-input, multiple-output (MIMO) systems. Such systems use multiple antennas to improve network capacity and spectral efficiency, helping telecom operators manage growing data traffic.
However, exporting telecom equipment involves more than manufacturing it at a competitive cost. Products must meet the technical and spectrum requirements of their destination markets. Ericsson has highlighted that radio equipment often requires market-specific configurations, making localisation, engineering and quality control important parts of an export strategy.
| Manufacturing indicator | Reported position |
|---|---|
| Antennas produced in India since July 2025 | More than 15,000 |
| Components produced in India since July 2025 | 25 million |
| Export destinations | Europe and other global markets |
| Indian manufacturing partner for antennas | VVDN Technologies |
| Key technology applications | 5G, massive MIMO and AI-ready networks |
Source: Ericsson’s October 7, 2026, announcement. Production figures do not mean that every unit produced has been exported.
The development gives India a larger role in Ericsson’s international supply network. It also demonstrates how manufacturing partnerships can help global telecom equipment companies expand local production without building every part of the supply chain independently.
Ericsson Expands Research and Semiconductor Design in India
Manufacturing is only one part of Ericsson’s India strategy. The company is also strengthening its research, development and engineering operations, particularly in areas that will shape future telecommunications networks.
India is Ericsson’s largest employee base, with approximately 22,000 employees, including around 2,200 working in research and development, according to company executives cited in recent reports. Its Indian R&D operations include work on artificial intelligence, network technologies, 6G and semiconductor design.
A notable capability is Ericsson’s application-specific integrated circuit (ASIC) design team in Bengaluru. ASICs are specialised chips designed for particular functions rather than general-purpose computing. They can be important in telecom infrastructure because network equipment requires specialised processing, performance and energy efficiency.
Ericsson has more than 200 professionals working in Bengaluru on ASIC design, according to Vicente. The company has also said it invests more than 20% of its revenue in research and development globally, although that figure should not be interpreted as India’s individual share of the spending.
These activities could help deepen India’s position in higher-value technology work. Instead of focusing only on assembly and production, the country can participate in product engineering, chip design and the development of next-generation network technologies.
India’s 5G Growth Makes the Market More Strategic
India’s rapid 5G expansion is another reason Ericsson sees the country as important to its global business. The rollout has created demand for radio equipment, antennas and network upgrades while giving telecom companies a large market in which to test and deploy new technologies.
At the India Mobile Congress 2026, Ericsson executives highlighted the scale of India’s 5G adoption. The company cited more than 430 million 5G subscriptions, representing about 35% of mobile subscriptions, and average monthly mobile data usage of approximately 37 GB per user. It also said mid-band 5G coverage had reached about 95% of India’s population. These figures are company-reported estimates. (Economic Times)
The scale of the market creates two opportunities. First, telecom operators need equipment to expand capacity and improve network performance. Second, the experience of deploying networks at national scale can support engineering and product development for other markets.
Ericsson has also argued that India’s progress with 5G standalone networks could give the country a useful foundation for moving towards 6G. Standalone 5G uses a dedicated 5G core network and supports programmable connectivity, potentially allowing operators to tailor network performance for different applications.
The transition to 6G remains a longer-term technology development effort rather than an immediate commercial replacement for 5G. Nevertheless, work on network architecture, AI and semiconductor design today could influence the capabilities available in future generations.
AI-Ready Networks Create New Demand for Equipment
Artificial intelligence is increasing the importance of network performance. As AI applications expand, networks may need to handle greater data volumes, stronger uplink capacity and lower latency for certain workloads.
AI computing will not take place only in large data centres. Depending on the application, processing may also happen closer to users through edge infrastructure or on devices. Telecom networks will need to support communication between these different computing environments.
Ericsson’s antenna and radio equipment is intended to help operators improve coverage, capacity and energy efficiency. More advanced antennas can help make better use of available spectrum, particularly in dense urban areas where network demand is high.
For equipment manufacturers, the opportunity lies in helping operators improve network performance while managing the cost of deploying and running infrastructure. But AI-related demand does not guarantee immediate sales growth. Telecom operators must still decide how much to invest, which upgrades to prioritise and how quickly new services can generate revenue.
How Localisation Fits India’s Manufacturing Strategy
Ericsson’s plans align with India’s broader effort to build domestic manufacturing capabilities and reduce reliance on imported technology components. Localisation can strengthen supply-chain resilience, develop industrial skills and create opportunities for Indian companies to become suppliers to global businesses.
The benefits will depend on how much production and component sourcing actually shift to India. Simply assembling equipment domestically does not necessarily create the same economic value as manufacturing key components or developing intellectual property locally.
A deeper supplier ecosystem could help Indian companies move into higher-value activities and become more competitive in international markets. However, they will need to meet demanding requirements for quality, reliability, technical expertise and cost.
Ericsson’s work with local manufacturing partners offers a potential pathway for Indian suppliers to enter global telecom supply chains. Its expanding exports suggest that at least some Indian-made products are already serving customers beyond the domestic market.
The Bigger Picture
Ericsson’s strategy reflects a broader change in India’s role in global technology manufacturing. The country is increasingly being considered not only as a major market for telecom services but also as a place to manufacture equipment, develop technology and supply international customers.
The combination of local production, exports, R&D and semiconductor design could create more value than manufacturing alone. Yet the scale of that opportunity will depend on supplier participation, investment, technical capabilities and sustained demand from telecom operators around the world.
Looking Ahead
The next developments to watch include whether Ericsson’s component suppliers commit to new Indian facilities, how quickly local sourcing expands and whether exports grow beyond the company’s current manufacturing milestones. Further investment in engineering and chip design could also strengthen India’s position within Ericsson’s global operations. The company has not disclosed a comprehensive target for the share of components it ultimately wants to localise.
For India, Ericsson’s plans provide an example of how a global technology company can combine domestic manufacturing with international exports and research. The long-term test will be whether this translates into a larger domestic supplier base, more high-value technical work and a sustainable increase in India’s contribution to global telecommunications production.
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