India’s iPhone Production to 2x Each Year

India's Manufacturing Boost
Explore how India benefits as Apple shifts iPhone production amid US-China trade tensions, potentially doubling output and creating jobs.

India stands to gain significantly from the ongoing US-China trade tensions as Apple continues to shift its production base to the country. Annually, Apple’s production in India amounts to approximately $15-16 billion worth of iPhones, a figure that is projected to double within the next two years due to various factors, including recent political developments in the US.

Political Shifts: Impact on India’s Manufacturing Sector

The recent election of US President Trump and his proposed tariffs on Chinese imports, ranging from 60 to 100 percent, could push companies like Apple to consider alternative manufacturing hubs, such as India. This shift, however, is contingent on the evolving diplomatic relations between Prime Minister Narendra Modi and President Trump, especially given India’s trade surplus with the US.

An official noted that while there are potential losses, India could benefit significantly in sectors like electronics, particularly in terms of iPhone production. To capitalize on this opportunity, India is advised to adjust its tax policies and business regulations to attract more foreign investments like those from Apple.

Strengthening India’s Position in Global Manufacturing

Currently, about 12-14 percent of Apple’s global iPhone production is based in India, thanks to the Modi government’s Production Linked Incentive (PLI) scheme. However, competition from other markets, such as Vietnam, poses a threat to India’s growing manufacturing base.

Economic Growth and Job Creation

The Economic Times suggests that the anticipated increase in iPhone production could create approximately 200,000 new jobs in India. As India’s per capita personal disposable income rises, the demand for luxury products like iPhones is also expected to increase. This is supported by Apple’s recently reported record revenue growth in India for the September quarter.

Expansion of Apple’s Retail and Manufacturing Footprint

To further penetrate the Indian market, Apple plans to open more Apple Stores in major cities including Delhi NCR, Mumbai, Bengaluru, and Pune. Additionally, Apple’s contract manufacturers, such as The Tata Group, are expanding their operations. The Tatas are setting up a second iPhone factory in Hosur, Tamil Nadu, which will employ up to 40,000 people. Other partners like Foxconn and Pegatron are also expected to increase their manufacturing capacities in India within the next year.

About the author

Aditi Sharma

Aditi Sharma

Aditi holds a Masters in Science degree from Rajasthan University and has 7 years under her belt. Her forward-thinking articles on future tech trends are a staple at annual tech innovation summits. Her passion for new tech trends ensures that our readers are always informed about the next big thing.

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