In a bold pivot that echoes the shifting winds of global trade, Apple Inc. has significantly increased its manufacturing operations in India, producing iPhones worth a staggering $22 billion. This strategic move marks a notable shift away from the tech titan’s historic manufacturing hub in China, a realignment influenced by rising geopolitical friction, pandemic disruptions, and the call for supply chain resilience.
According to recent reports, India now contributes nearly 20% of Apple’s global iPhone output, a meteoric rise that not only diversifies Apple’s operations but also signals India’s growing clout in the electronics ecosystem.
The foundation of this transformation was laid during the COVID-19 crisis when rigid lockdowns in China stifled production at Apple’s primary facilities. In response, Apple began reducing its dependence on Chinese manufacturing, channeling its production lines to India — with Foxconn’s southern India plant at the center of this surge and Tata Group’s electronics unit also emerging as a key player.
India Ships Out $17.4 Billion Worth of iPhones
India’s role is no longer confined to assembling, it has become an export powerhouse. In the fiscal year ending March 2025, the country exported Rs 1.5 lakh crore (approximately $17.4 billion) worth of iPhones. A considerable share of these shipments were directed to the United States, especially after Apple leveraged its Indian production to navigate around the tariffs imposed under former President Donald Trump’s trade policies.
Because iPhones made in India are exempt from the import taxes slapped on Chinese goods, the export volume to the U.S. has skyrocketed — a win-win for both Apple and India.
India’s Ascent as a Manufacturing Magnet
Apple’s relocation efforts align with its long-term ambition to diversify its supply base beyond China. Experts suggest it may take years to fully wean off Chinese dependence, but India is now clearly poised to benefit.
To accelerate this transformation, the Indian government has introduced a $2.7 billion production-linked incentive (PLI) scheme, offering support to bolster local electronics manufacturing. Coupled with its zero-tariff access for exports like smartphones, laptops, and tablets, India is steadily shaping itself into a next-gen manufacturing hub.
The Tariff Edge: India vs. China
The India Cellular and Electronics Association (ICEA) highlights that both India and Vietnam offer about a 20% cost advantage in the U.S. market when compared to Chinese smartphones, thanks to waived tariffs.
With global dynamics evolving, Apple’s bet on India is more than just production, it’s a vision of decentralised, sustainable, and future-ready innovation.
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