India’s growing role in iPhone production: Global shift in Apple’s supply chain

IPhones made in India? While it may sound strange, it is to happen in the near future. iPhones will be made in India in the near future. Apple is looking at shifting more of its iPhone production out of China and into India in a change of how and where one of the world's most popular smartphones is built. Apple’s iPhone manufacturing unit has always been in China. But why this shift?  This is a major change in Apple’s global manufacturing strategy. Apple is expected to transfer assembly of all iPhones sold in the United States from China to India as soon as next year, according to Financial Times. While this is Apple’s largest manufacturing shift in decades, this shift could create thousands of new jobs and opportunities at a time when India’s electronics sector is taking off.

Why is Apple moving iPhone production to India?

Apple has been heavily dependent on China for years, with 90 percent of iPhones assembled there and 40 percent of suppliers in the country. Apple has relied on China to become as successful as it has, but ever rising trade tensions between China and the US, especially from President Donald Trump’s recently enacted tariffs, have made manufacturing in China more expensive and more risky for Apple. For example, some Chinese manufactured goods now are subject to tariffs as high as 54 percent, making it more difficult for Apple to keep costs down.

But India presents a more stable trade environment and is in talks with the US to strike a special trade deal that could make Indian made iPhones even more attractive for export. Another reason why Apple could get into a production spree in India is India has a paused reciprocal tariff for 26 per cent whereas duties on Chinese goods are much higher.

India’s iPhone manufacturing boom

India is already reaping the benefits of Apple’s investment. Apple assembled iPhones worth 22 billion dollars in India in the financial year ending March 2025, up 60 percent from the previous year. In other words, India now makes 10-20% of all iPhones manufactured globally versus 12-14% in 2023. Tata Group and Pegatron are also involved in assembling most of these iPhones, and Foxconn’s facilities in Tamil Nadu and Karnataka are at the heart of it.

The new Foxconn plant in Bengaluru is soon expected to become operational and may eventually manufacture as many as 20 million iPhones a year, adding to the employment and exports in the region. Apple and Foxconn’s investments are also forecast to generate some 100,000 jobs in the next 10 years, according to Karnataka’s government.

What does this mean for India?

Apple’s decision is a big win for India’s goal to become a global manufacturing hub. 

• Apple’s suppliers and partners will create new jobs for assembly lines, logistics, quality control, and management.
• Production Linked Incentive (PLI) scheme of the government and 2.7 billion dollars in incentives are luring more global tech companies to set up shop in India.
• India’s growth in related sectors such as electronics components, packaging and transport will increase.
• In FY25, India exported iPhones worth 17.4 billion dollars, and the Indian made iPhones are already finding their way into global markets.

Challenges that India can face

While this is promising, it is not without challenge. Apple’s supply chain in China is well established and it will take time and care to move such a large operation. It will take several years for India to be on a par with China in terms of scale and efficiency, but the momentum is very clear.

Apple and its suppliers plan to assemble 32% of global iPhones in India by 2026-27, with a production value of 34 billion dollars. Tata Electronics is also growing, having recently taken a majority stake in Pegatron’s plant in Tamil Nadu, which will add to capacity.

A new era for Indian manufacturing

Apple’s move to shift iPhone production in the US to India is a sign of India’s increasing role in the global technology supply chain. This means more job opportunities, better training, and an opportunity to be part of the world’s most advanced manufacturing processes for Indian workers, engineers and students. India’s role in the global tech industry will become stronger than ever as Apple’s factories grow.

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