In a sweeping transformation of its global manufacturing strategy, Apple Inc. has officially turned the tide of iPhone production towards India. In fiscal year 2024–25, the tech giant manufactured iPhones worth an astonishing $22 billion in India, accounting for nearly 20% of its global iPhone output. This marks a monumental departure from its long-standing dependence on China — a move shaped by pandemic disruptions, geopolitical tensions, and Apple’s goal to diversify its supply chain.
The Shift from China to India: A Strategic Necessity
For years, China served as the backbone of Apple’s manufacturing empire. However, severe COVID-19 lockdowns — especially at Apple’s largest production hub in Zhengzhou — forced the company to reconsider its reliance on a single country. As global supply chains crumbled, Apple took a bold step: decentralize, diversify, and de-risk.
India emerged as the natural successor.
Backed by a stable policy environment and strong government incentives, India’s southern manufacturing corridor — particularly the Foxconn facility and Tata Group’s electronics unit — is now a key contributor to Apple’s global production line.
Export Boom: $17.4 Billion in iPhones Shipped Abroad
Apple’s manufacturing boom in India isn’t just about assembly — it’s about exports too. In the fiscal year ending March 2025, India exported iPhones worth Rs 1.5 lakh crore (approximately $17.4 billion), signaling the country’s growing significance as a global electronics exporter.
Much of this growth can be attributed to the U.S. government’s “reciprocal tariff” policy introduced during Donald Trump’s presidency. While Chinese-made electronics faced hefty tariffs, India-made iPhones were exempt — giving Apple a massive pricing advantage in the American market.
As a result, shipments from India to the U.S. have skyrocketed, with India quickly becoming Apple’s go-to hub for tariff-free iPhone exports.
PLI Scheme: India’s $2.7 Billion Push for Electronics Manufacturing
Apple’s growing trust in India is supported by robust government initiatives. The Production-Linked Incentive (PLI) scheme — offering $2.7 billion in incentives — has been instrumental in attracting big tech companies to set up shop in the country.
Additionally, India’s zero-tariff policy for smartphone, laptop, and tablet exports to the U.S. makes it a highly cost-effective destination for manufacturing. It’s a win-win situation: India gets investments, jobs, and global credibility, while Apple gets to bypass tariffs and cut costs.
India vs China: A Competitive Edge
According to the India Cellular and Electronics Association (ICEA), India and Vietnam both offer a 20% cost advantage over China for smartphones exported to the U.S. However, what sets India apart is scale. While Vietnam leads in Samsung production, Apple’s rapid expansion in India is closing the gap.
Tata Group’s increasing role and the scaling up of Foxconn’s operations are turning India into an electronics powerhouse — not just for Apple, but potentially for the entire global supply chain.
Apple’s Consumer Growth in India
The transformation isn’t limited to exports and manufacturing. Apple is also expanding its footprint in the Indian consumer market. The iPhone maker now holds nearly 8% of the Indian smartphone market, with domestic sales nearing $8 billion in FY24.
This growing market presence is powered by increased brand visibility, premium store launches, and affordable financing options tailored for Indian consumers.
Long-Term Vision: India as a Global Electronics Hub
Apple’s shift to India is not a short-term reaction — it’s a long-term vision. According to Bloomberg Intelligence, it may take up to eight years to relocate just 10% of Apple’s China-based capacity. But the groundwork has been laid.
With government support, infrastructure upgrades, and growing skilled labor, India is well-positioned to absorb more high-value manufacturing in the coming years.
Apple’s $22 billion production shift is more than a milestone — it’s a message. The future of global manufacturing is multi-nodal, diversified, and less China-centric. And in that future, India is not just a participant — it’s a leader.
From geopolitical risks to economic opportunities, from tariffs to talent — the stars are aligning for India to become the iPhone maker of the future.
