India is intensifying efforts to persuade Apple and its suppliers to ramp up domestic production of electronic components and sub-assemblies, with the ultimate goal of broadening manufacturing capabilities beyond the final assembly of existing products like iPhones and AirPods to encompass MacBooks, iPads, and Apple Watches. This strategic pivot is fueled by global imperatives for supply chain diversification, especially in light of US-China trade tensions and post-pandemic disruptions, which have prompted major tech firms to reduce their reliance on China. India presents a compelling case with its Production Linked Incentive (PLI) scheme and comparatively favorable reciprocal tariffs for electronics, positioning it as a significant alternative manufacturing hub alongside Vietnam. While India has already established a substantial role in exporting iPhones, the government's focus is shifting towards fostering local component creation to serve both domestic consumption and international markets, including China and Vietnam, thereby transforming India's manufacturing landscape from primarily low-cost assembly to a more comprehensive production ecosystem for a wider array of Apple products.

India is intensifying efforts to persuade Apple and its suppliers to ramp up domestic production of electronic components and sub-assemblies, with the ultimate goal of broadening manufacturing capabilities beyond the final assembly of existing products like iPhones and AirPods to encompass MacBooks, iPads, and Apple Watches. This strategic pivot is fueled by global imperatives for supply chain diversification, especially in light of US-China trade tensions and post-pandemic disruptions, which have prompted major tech firms to reduce their reliance on China. India presents a compelling case with its Production Linked Incentive (PLI) scheme and comparatively favorable reciprocal tariffs for electronics, positioning it as a significant alternative manufacturing hub alongside Vietnam. While India has already established a substantial role in exporting iPhones, the government's focus is shifting towards fostering local component creation to serve both domestic consumption and international markets, including China and Vietnam, thereby transforming India's manufacturing landscape from primarily low-cost assembly to a more comprehensive production ecosystem for a wider array of Apple products.

India is intensifying efforts to persuade Apple and its suppliers to ramp up domestic production of electronic components and sub-assemblies, with the ultimate goal of broadening manufacturing capabilities beyond the final assembly of existing products like iPhones and AirPods to encompass MacBooks, iPads, and Apple Watches. This strategic pivot is fueled by global imperatives for supply chain diversification, especially in light of US-China trade tensions and post-pandemic disruptions, which have prompted major tech firms to reduce their reliance on China. India presents a compelling case with its Production Linked Incentive (PLI) scheme and comparatively favorable reciprocal tariffs for electronics, positioning it as a significant alternative manufacturing hub alongside Vietnam. While India has already established a substantial role in exporting iPhones, the government's focus is shifting towards fostering local component creation to serve both domestic consumption and international markets, including China and Vietnam, thereby transforming India's manufacturing landscape from primarily low-cost assembly to a more comprehensive production ecosystem for a wider array of Apple products.

India is pushing Apple and its suppliers to expand domestic production of components before the company widens its footprint into assembling finished products, including the MacBook, iPad and Apple Watch.

After the Trump administration's triple-digit tariffs on Chinese goods in April 2025 and disruptions during the COVID-19 lockdown, tech giants such as Apple, Samsung and Google have been rapidly shifting their reliance on China. Strained US-China relations are further amplifying the need to diversify their supply chain.

As growing markets with cheaper labour incentives, India and Vietnam have both been identified as favourable locations for these tech giants. India’s reciprocal tariffs for electronics from the US are also comparatively lower, around 18 per cent, which can give the country an upper hand in negotiations. India’s Production Linked Incentive (PLI) is also attractive, which gives subsidies based on incremental production and export volume.

India is already a major manufacturing hub for Apple. Key production facilities are located in Tamil Nadu and Karnataka, operated by global giants like Foxconn and the Tata Group. Under the PLI scheme, it has exported more than $50 billion worth of iPhones from India in December 2025.

Indian facilities now produce components for Apple exports, including printed circuit board assemblies (PCBAs), mechanical parts, housing flex PCBAs, conductive graphite buttons, wires and packing materials, marking a change from its role as a low-cost assembly destination.

However, Apple’s operational manufacturing footprint in India mainly includes Final Assembly, Testing and Packaging (FATP). The government now wants suppliers to produce more components and sub-assemblies that can be incorporated into finished products. This involves production for the domestic market as well as shipping components to China and Vietnam.

This move is part of India stepping towards self-reliance. Even as 99 per cent of the mobile phones used are domestically produced inside the country, local production still relies on imported parts.

Over time, officials expect that a wider supply chain will prompt the company to expand its production beyond existing iPhone and AirPods and include products such as MacBook, iPad and Apple Watch.

A government official told Moneycontrol, “The expectation is that the entire product line should come to India. Some parts are already being made here. For instance, mechanical components, including enclosures, are also being manufactured here for exports. Yes, gradually, the manufacturing of final products will also start coming to India. That's the expectation.”

Manufacturing mechanical components, such as enclosures and casings, is particularly important as they can be used for a broad range of products. Expanding production capacity in this area might allow suppliers to provide for other Apple products.

TAGS