iPhone productions in India up by nearly 60% amid US-China trade war

Apple has significantly expanded its iPhone manufacturing in India, assembling devices worth $22 billion (approximately ₹1.89 lakh crore) in the fiscal year ending March 2025. This marks a nearly 60% jump from the previous fiscal year and underscores Apple’s deepening commitment to reducing dependence on China and strengthening India’s role in its global supply chain.

Currently, one in every five iPhones sold globally is produced in India. The surge in Indian production is largely driven by Foxconn Technology Group, which operates a major facility in southern India. Tata Group’s electronics manufacturing unit has also emerged as a key contributor, reinforcing India's growing presence in high-end smartphone manufacturing.

The shift toward India gained momentum after the COVID-19 pandemic exposed vulnerabilities in China-centric supply chains. Apple has since accelerated its efforts to diversify manufacturing, prompted further by geopolitical tensions and U.S. trade policies, including former President Donald Trump’s reciprocal tariff announcements.

In the fiscal year ending March, Apple exported iPhones worth approximately ₹1.5 trillion ($17.4 billion) from India, with a large chunk going to the U.S. market. These exports were strategically advanced to align with tariff policy shifts and to ensure uninterrupted supply to American consumers.

The recent exemption of electronics from Trump-era tariffs has proved beneficial for Apple. Indian-made iPhones can now enter the U.S. without incurring additional duties, making them more cost-effective and competitive. However, the broader tariff structure on Chinese goods remains complex, creating a layered challenge for global tech manufacturers.

Despite the robust expansion in India, a complete pivot away from China remains unlikely in the short term. Apple still depends on nearly 200 suppliers based in China, and industry analysts believe that replicating China's manufacturing ecosystem in India or elsewhere will take considerable time. CEO Tim Cook has also acknowledged the unmatched expertise of Chinese manufacturers, suggesting that diversification will be gradual.