In a significant milestone, Apple’s iPhone exports from India have surpassed the Rs 1 trillion mark in the first 10 months of the fiscal year 2025 (FY25), reflecting a 31% increase from Rs 76,000 crore during the same period in the previous fiscal year. This remarkable growth underscores India’s burgeoning role in Apple’s global supply chain and the country’s emergence as a key player in the electronics manufacturing sector.
Strategic Partnerships and the iPhone 16 Launch
A pivotal factor contributing to this surge is Apple’s strategic collaboration with its contract manufacturers in India—Foxconn, Tata Electronics, and Pegatron. These partnerships have been instrumental in scaling up production capacities and meeting the escalating global demand for iPhones. Notably, the launch of the iPhone 16 series, including the iPhone 16 Pro and iPhone 16 Pro Max, assembled in India shortly after their global debut, has significantly bolstered export figures. Since October 2024, following the iPhone 16’s release, monthly exports have consistently exceeded Rs 10,000 crore, culminating in a record Rs 19,000 crore in January 2025.
Shift from China to India
Apple’s strategic move to diversify its manufacturing base from China to India is driven by geopolitical considerations and the desire to mitigate supply chain risks. This transition has been facilitated by the Indian government’s Production-Linked Incentive (PLI) scheme, which offers financial incentives to boost domestic manufacturing. As a result, iPhones have become a significant component of India’s export portfolio, with smartphones now ranking among the country’s top 10 export categories.
Economic Impact and Job Creation
The expansion of iPhone manufacturing in India has had a profound impact on the country’s economy. In FY24, Apple assembled iPhones worth $14 billion (Rs 1.2 trillion) in India, with exports exceeding $10 billion (Rs 85,000 crore). This upward trajectory is expected to continue, with projections indicating that India’s share in Apple’s global iPhone production could rise from the current 14% to over 26% by 2026.
Beyond export revenues, Apple’s operations have significantly contributed to employment generation. The company’s manufacturing ecosystem in India has created approximately 185,000 direct jobs, with over 70% of these positions held by women, many of whom are entering the workforce for the first time. Foxconn’s plant in Tamil Nadu, for instance, stands as India’s largest factory by employment across all sectors, employing over 42,000 workers during peak operations, including more than 30,000 women.
Enhancing Local Value Addition
Apple is also focusing on increasing local value addition by integrating Indian and predominantly non-Chinese suppliers into its supply chain. The company has initiated local production of components and sub-assemblies, thereby enhancing the domestic manufacturing ecosystem. This approach aligns with the objectives of the PLI scheme and positions India as a burgeoning hub for electronics exports.
Future Outlook
The success of Apple’s manufacturing and export strategy in India underscores the country’s potential as a global manufacturing powerhouse. With continued government support, strategic partnerships, and a focus on local value addition, India is poised to play an increasingly pivotal role in the global electronics supply chain. As Apple continues to scale its operations, the ripple effects on the Indian economy, in terms of job creation, skill development, and technological advancement, are expected to be substantial.
In conclusion, Apple’s achievement of surpassing Rs 1 trillion in iPhone exports within 10 months of FY25 is a testament to the successful synergy between multinational corporations and India’s manufacturing capabilities. This development not only strengthens India’s position in the global electronics market but also contributes significantly to the nation’s economic growth and industrial diversification.
