Global electronics behemoths Apple and Samsung are gradually moving their production facilities to India in reaction to former US President Donald Trump’s harsh tariff policy on imports from China and Vietnam. The action is perceived as a strategic shift aimed at reducing dependency on China and preserving a competitive advantage in the US market.
As major smartphone makers modify their supply chains to get around growing trade hurdles, the “Make in India” movement is gaining traction. Apple has already begun shipping iPhones to the United States from its factory in India, indicating a major decrease in its reliance on exports from China. “India’s factories will be increasingly used to ship only to the US. Demandin other markets such as Europe, Latin America and even Asia will now becatered to from the China factories. In a way, this will be a significantleapfrogging for iPhone production in India and may lead to major expansion inthe country if Apple decides to stick to the formula going forward,” media said, quoting a top industry official.
Tech imports have been severely impacted by Trump’s tariff regime, which imposes 26% on Indian goods, 54% on Chinese exports (which just increased to 34%), and 46% on Vietnamese goods. Apple has relied on its Indian production facilities run by the Tata Group and Taiwanese company Foxconn to manage this complicated trading climate. Additionally, the business has strengthened its local skills by acquiring assets from Pegatron and Wistron.
An insider noted, “If Apple does not go for developing all-new productionzones in locations, such as the UAE and Saudi Arabia, or in Brazil — all ofwhich have US tariffs of 10% — then there will be a significant expansion ofcapacity in India.”
Foxconn and Tata may make significant expenditures as a result of this development, which might increase iPhone shipments from India over the $10 billion forecast for this fiscal year. Future U.S. trade talks with other countries, however, will have a significant impact on the direction of this output shift. “Samsung will find it better to ship from India at a duty of 26% thanexport from Vietnam. While this will be a temporary measure till the Vietnamesegovernment negotiates with the US, it adds a lot of importance to Make in India,”the official told media.
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