New Delhi, Nov. 6 -- As new phones become more expensive and upgrades less frequent, a growing number of Indians are choosing refurbished devices. What was once an informal corner of the electronics trade-and almost entirely unorganized-has slowly become a part of the mainstream smartphone economy.

Modern smartphones are more durable, software support has improved, and the performance gap between successive generations has narrowed. At the same time, smartphone prices have steadily risen, particularly over the last 18 months as component costs increased globally. The result is a market where consumers are holding onto devices longer and upgrading more selectively.

And looking harder at alternatives to buying new.

One of the biggest ben...