Apple May Shift 30% of Global iPhone Production to India: Government

In the next years, the Indian government anticipates that Apple Inc. will manufacture 30% of its iPhones worldwide in India. In light of the US Supreme Court's decision, the government does not anticipate any changes to Apple's expansion plans.

The 10% fentanyl tax that was levied on China and other nations was deemed unlawful by the US Supreme Court. The tariff disparity that had previously benefited India is no longer an option, and the United States will be able to purchase iPhones from either China or India duty-free.

Apple’s Expansion in India

Around 20% of Apple Inc.'s worldwide iPhone manufacture was handled in India as of 2024-25 (FY25). By the conclusion of the production-linked incentive (PLI) plan in FY26, many analysts predict it will reach approximately 25%. The government does not anticipate any change in Apple Inc.'s approach in India as a result of the US Supreme Court judgement, according to a senior government official.

The Indian market is important to the business since it is a reliable supplier of raw materials. India is keeping its fingers crossed that Apple will eventually use the country to manufacture 30% of its iPhones worldwide. Partially covered by the 4-6% PLI incentive plan, India's cost of disability for iPhone manufacturing was 10-14%. Nevertheless, due to the zero-duty exports to the US, India became a cost-effective supplier despite the 20% fentanyl tariff on China.

India lost some of its advantage when the fentanyl duty was reduced to 10%. Nevertheless, there are concerns that as a result of China's zero-duty policy, India may lose its allure as a supplier of iPhones to the United States. These shipments increased by 200% from April to November of last year. Between January and December of 2025, India shipped $30 billion worth of smartphones, with $22 billion going to Apple, accounting for 75% of that total.

Apple Supply Chain Drive in India Creates 2.5 Lakh Jobs

In recent years, Apple Inc. has grown into a major employer of blue-collar workers in India. In 2021, the government introduced the Production-Linked Incentive (PLI) programme to encourage the manufacturing of mobile phones, which has since benefited the tech titan. The Cupertino-based tech giant's India ecosystem has created more than 250,000 direct jobs in just five years, which is significantly more than what was first anticipated.

The PLI initiative will conclude in March 2026. Statistical evidence provided to the Ministry of Electronics and Information Technology (MeitY) by the Electronic Component Manufacturing (ECM) and the PLI programmes reveals an astonishing 70% female representation in these positions, with many of these women falling into the first-time worker age bracket of 19–24.