Apple, the world’s most valuable technology company, is poised to make a significant shift in its manufacturing strategy. With rising tensions between the United States and China, Apple is aggressively ramping up its production capacity in India.
According to recent industry reports, by late 2026, India could overtake China as Apple’s primary manufacturing hub for iPhones, signaling a monumental change not just for Apple, but for the global electronics manufacturing landscape.

Apple’s Current Manufacturing Footprint in India

Rapid Growth in Production Numbers

As of 2024, Apple manufactures approximately 40 to 43 million iPhones annually in India. Notably, around 80% of these devices are destined for export markets, particularly the United States.
Industry experts project that by 2026, India’s production could surge to 70 to 80 million units per year, further solidifying the country’s role in Apple’s global supply chain.

Key Players in Apple’s India Expansion

Foxconn and Tata Electronics: Leading the Charge

Two major players are at the forefront of Apple’s Indian manufacturing strategy:

• Foxconn: The Taiwanese giant continues to expand its production lines in India, including building new facilities.

• Tata Electronics: Tata has acquired manufacturing assets from Wistron and Pegatron, two of Apple’s longtime partners, strengthening India’s local manufacturing ecosystem.

Industry estimates suggest that within the next 18 months, India could account for nearly 40% of all global iPhone sales, a massive leap from the current 18–20% share.

India’s Government Support for Apple’s Expansion

Recognizing the strategic and economic importance of this shift, the Indian government has extended full support to Apple and its suppliers.
Officials are actively collaborating to ensure smooth operations, offering incentives, easing regulatory barriers, and encouraging reforms to facilitate large-scale production.

Economic Impact and Export Growth

A Boost to India’s Electronics Sector

The economic implications of Apple’s growing manufacturing base in India are substantial:

• FY24 Exports: iPhones worth approximately Rs 85,000 crore were exported.

• FY25 Exports: This figure surged to nearly Rs 1.5 lakh crore, almost doubling within a year.

This boom strengthens India’s position as a major electronics exporter and contributes significantly to the country’s GDP.

Geopolitical Factors and Strategic Considerations

While Apple’s pivot to India appears promising, it is deeply influenced by global geopolitical dynamics.
The US-China trade tensions and the potential for new US trade agreements will play a major role in determining the speed and success of this transition.

If a future US administration, such as a returning Trump administration, adopts a more lenient stance toward China, it could potentially slow Apple’s shift to India. Conversely, worsening relations would accelerate the diversification away from China.

Challenges India Must Overcome

Cost Disadvantages Compared to Vietnam and China

Despite the positive momentum, India faces significant challenges:

• According to the India Cellular and Electronics Association (ICEA), India still has a 7% to 7.5% cost disadvantage compared to Vietnam and China.

• Higher costs are attributed to issues in sub-assemblies, components supply chains, and logistics inefficiencies.

Policy and Tax Reforms Are Critical

A Niti Aayog study stresses the need for comprehensive reforms to maintain competitiveness:

• Reduce component tariffs to align with Vietnam and China.

• Simplify direct and indirect tax structures.

• Encourage investment in sub-assembly and component manufacturing to reduce reliance on imports.

Without these reforms, India risks losing production share to other Southeast Asian nations.

Strategic Negotiations with the United States

India’s ability to negotiate favorable trade agreements with the United States will be crucial.
Although India currently enjoys a better position under the US tariff regime compared to China, experts warn that New Delhi must act swiftly to secure long-term advantages and lock in major investments from Apple and other global tech giants.

India as a Global Electronics Powerhouse

The accelerated expansion of Apple’s iPhone production in India is more than just a manufacturing shift—it’s a pivotal moment in global trade and industry.
As India addresses its policy gaps and streamlines its manufacturing ecosystem, it is well-positioned to emerge as a global leader in electronics manufacturing, enhancing its strategic and economic clout on the world stage.

Apple’s growing reliance on India not only validates the country’s industrial ambitions but also paves the way for more tech giants to consider India as a preferred manufacturing destination in the coming years.

FAQs:

1. Why is Apple increasing iPhone production in India?

Apple is reducing its dependency on China due to geopolitical tensions and supply chain risks, making India a key alternative manufacturing base.

2. How many iPhones are currently made in India?

Apple currently manufactures around 40-43 million iPhones annually in India, with a majority being exported.

3. Who are the major players involved in Apple’s Indian operations?

Foxconn and Tata Electronics are the primary manufacturing partners leading Apple’s operations in India.

4. How much could India’s iPhone production grow by 2026?

Industry estimates suggest production could rise to 70-80 million units per year by late 2026.

5. What challenges does India face in becoming Apple’s main manufacturing hub?

India needs to address cost disadvantages, improve logistics efficiency, lower component tariffs, and negotiate favorable trade agreements.

6. How does Apple’s move benefit India economically?

It boosts India’s electronics exports, strengthens its manufacturing sector, and creates employment opportunities, significantly contributing to GDP growth.