New Delhi, Oct. 24 -- A consensus estimate from eight retailers across India indicates that they sold 15% more smartphones during this festive season-the four weeks leading up to Diwali, which account for more than a third of annual smartphone sales.

While this would typically imply a robust market, analysts project that 2025 will still record fewer sales than the 2021 peak.

Mint explains why India, once the world's fastest-growing market for smartphones, has remained stagnant for four straight years, despite seeing a surge this festive season.

India is the world's fifth-largest retail economy, and a tenth of all retail sales come from consumer electronics. Smartphones, which generate nearly $50 billion in revenue annually, account for...