India to Emerge as the Manufacturing Hub for iPhone Production

Why in News? 

According to a recent Reuters report, Apple has taken a significant step towards making India a key iPhone manufacturing hub for the U.S. market by rapidly advancing its plan to shift iPhone production from China to India. 

Current Status of iPhone Manufacturing in India

• India has emerged as an important center for iPhone manufacturing. The process of iPhone manufacturing in India has accelerated in the past few years.
• Last year, there was a 60% increase in iPhone production in India, showing the country’s growing manufacturing capability.
• iPhone exports from India are also rising rapidly. About 70% of Apple’s iPhone production from India is exported, and this figure is expected to grow in the future.
• Major companies involved in iPhone manufacturing in India include Foxconn, Pegatron, and Tata Electronics.
  • Tata Electronics has launched an iPhone assembly unit in Hosur, Tamil Nadu, focusing on assembling previous-generation models to strengthen its role in Apple’s supply chain.
  • Foxconn is building another factory in Bengaluru, costing $2.6 billion. This plant will have the capacity to produce 300 to 500 iPhone units per hour, including models like iPhone 16 and iPhone 16e.
• Apple set a new monthly record in March 2025 by exporting 600 tons of iPhones valued at $2 billion to the U.S., highlighting India’s growing role in global shipments.
  • Foxconn accounted for $1.3 billion, while the rest were produced by Tata Electronics.
• Apple aims to further expand its production in India for the U.S. market by 2026.
• By 2026, Apple aims to make India a key hub by manufacturing nearly one-third of its global iPhones and over a quarter of their total value there.

Why Did Apple Decide to Expand iPhone Manufacturing in India?

• Changes in U.S. trade policy and tariffs: Apple’s decision to start iPhone manufacturing in India came after the U.S. government imposed over 100% tariffs on Chinese imports. The government also warned of further increases, which could raise iPhone prices and impact customers.
• Reducing dependency on China: Until now, over 75% of global iPhones were produced in China. Apple is trying to reduce this dependency, and India has emerged as a promising alternative. This also helps Apple strengthen its presence in the Indian market.
• Supply chain stability: Apple’s main goal is to make its supply chain more stable. Manufacturing in India provides flexibility and ensures smoother global distribution even during international disruptions.

Benefits of Increased iPhone Manufacturing in India

• Employment generation: iPhone production will promote economic growth. The start of manufacturing in India not only benefits Apple but also strengthens the Indian economy. New factories will create millions of jobs, helping reduce unemployment.
• Support to local industries: iPhone manufacturing will also support Indian local industries. Collaboration with Apple and its partners will benefit automotive parts, electronic components, and supply chain industries. Indian companies will improve technical innovation and production capacity.
• Strengthening global supply chains: iPhone production in India will strengthen Apple’s global supply chain. It will reduce dependence on China and lower logistics costs, increasing product availability in various markets.
• Foreign investment and technology transfer: iPhone manufacturing in India will attract foreign investment and boost technology transfer. Apple will share advanced technology with Indian companies, leading to innovation in smartphones and electronics.

Government Policies and Support to Promote Manufacturing

• Make in India: Launched in 2014, this campaign aims to make India a global manufacturing hub by promoting domestic production and attracting foreign investment.
• Production-Linked Incentive (PLI) Scheme: The PLI scheme encourages manufacturing in multiple sectors, offering incentives to meet global production standards.
• Liberalized Foreign Direct Investment (FDI) Policy: The Indian government allows 100% FDI in many sectors, attracting foreign capital and enabling technology transfer and innovation in manufacturing.
• National Manufacturing Policy: The goal is to raise the share of manufacturing in GDP to 25% by 2025, with regulatory and structural reforms supporting this mission.
• Ease of Doing Business: The government has made reforms to simplify administrative procedures, reducing time and cost for manufacturing.
  • Under the PM Gati Shakti Yojana, transport and infrastructure are being integrated to reduce logistics costs and improve efficiency in the manufacturing sector.