April 15, 2025 — In a major shift that underscores India’s growing importance in global electronics manufacturing, Apple has significantly increased its iPhone production in the country, reaching an impressive $22 billion in the fiscal year 2025. This marks a 60% rise compared to the previous year, signaling Apple’s strategic pivot towards reducing dependence on China amid persistent supply chain disruptions and geopolitical tensions.
According to industry sources, nearly 20% of all iPhones sold globally are now made in India, highlighting the South Asian nation’s emergence as a key player in the global smartphone supply chain. Out of the $22 billion worth of iPhones manufactured in India this fiscal year, approximately $17.4 billion were exported, showcasing India’s growing role not just in domestic consumption but as a global export hub.
Strategic Shift from China
Apple’s move to scale up production in India is largely seen as a response to recurring operational and policy-related challenges in China. The company’s long-standing manufacturing base in China has faced numerous hurdles in recent years, ranging from stringent COVID-19 lockdowns to increasing U.S.-China trade tensions.
This “China Plus One” strategy has become increasingly popular among multinational companies, and Apple appears to be leading the charge. India’s competitive labor costs, expanding infrastructure, and policy support have made it an attractive alternative.
Government Incentives Fuel Growth
The Indian government’s Production-Linked Incentive (PLI) scheme has played a critical role in attracting major global electronics manufacturers, including Apple. Launched to boost local manufacturing and exports, the scheme offers financial incentives to firms that increase domestic production and meet specific investment targets.
Officials from the Ministry of Electronics and Information Technology (MeitY) said the surge in Apple’s local output reflects the success of these initiatives. “This is a clear indication that India is becoming a preferred destination for high-end electronics manufacturing,” a senior MeitY official stated.
Key Manufacturing Partners: Foxconn, Tata, and Pegatron
Apple’s ramped-up production has been made possible through its global manufacturing partners, especially in southern India. Foxconn, one of Apple’s largest contract manufacturers, continues to operate its large-scale facility in Tamil Nadu, which has seen significant expansion in recent months.
Another major contributor is the Tata Group’s electronics division, which has increasingly played a central role in Apple’s India strategy. Tata recently acquired Wistron Corp.’s India operations, further cementing its role in Apple’s supply chain. Tata also oversees the operations of Pegatron Corp., another Taiwanese electronics manufacturer with a growing footprint in the country.
Tata’s involvement marks a significant development as it is one of the few Indian conglomerates directly contributing to the assembly of iPhones, a domain previously dominated by foreign players.
A Win for India’s Electronics Ecosystem
Apple’s expansion is a significant milestone for India’s ambitions to become a global electronics manufacturing hub. The ripple effects are expected to boost local employment, improve supply chain infrastructure, and increase the country’s export revenues.
Analysts believe that this success story could serve as a model for other global tech giants looking to diversify their manufacturing operations. “India’s rapid scale-up in Apple’s supply chain sends a powerful signal to the world about its readiness to handle high-tech manufacturing,” said Anshul Sharma, a senior analyst at a Mumbai-based research firm.
Looking Ahead
With Apple’s production figures in India continuing to rise and export values reaching new highs, the tech giant’s bet on India seems to be paying off. As infrastructure improves and more global players explore opportunities in the country, India could soon move from being an alternative to China to becoming a primary global manufacturing destination.
The next few years will likely see further consolidation of Apple’s manufacturing footprint in India, potentially expanding into other product categories beyond iPhones.
