@Kaeshmiri how about productivity? having cheap labor doesn't connote greater profit if the whole supply chain need to be imported? especially with creaking infrastructure hindering production and supply.
The recent budget in India hiked custom duty for electronic imports. Their products will simply become uncompetitive in Indian market if they keep importing all components and fail to keep the price down . Remember they aren't the only Chinese player in town ( Vivo, Oppo, Realme all produce very competitive products). They have no choice but to invest in local supply chains and stay ahead of its Chinese competition and Samsung (which has invested a lot locally and are now producing competitive products).
Also they wont be importing the whole supply chain, its not possible to do that. Critical components will continue to be imported but other components can be produced locally.
Regarding stuff like productivity, logistics, infra. They've probably made the calculations . Incentives, subsides, low wages will offset the loss there.