India’s Apple Moment: From Assembly Line to Global Hub
By Sanjeev Oak
India is rapidly emerging as the world’s new production hub, with Apple’s expanded iPhone manufacturing underscoring the success of New Delhi’s PLI scheme—shifting global supply chains from China to India, while boosting exports, jobs, and technological self-reliance.
Apple’s decision to expand iPhone production in India, particularly for US-bound new models, marks a turning point not just for the company but for India’s global manufacturing ambitions. What was once a tentative experiment to diversify away from China has now matured into a long-term bet on India as the world’s next production powerhouse.
This shift cannot be understood in isolation. It is a product of geopolitics, economics, and India’s own policy push — notably the Production-Linked Incentive (PLI) scheme. The Narendra Modi government has repeatedly emphasised “Make in India, Make for the World,” and Apple’s increasing footprint seems to validate that vision.
Why India, Why Now?
For Apple, the risks of over-dependence on China became undeniable during the pandemic. Factory shutdowns in Zhengzhou in 2022 disrupted global iPhone supplies, while US-China trade wars escalated uncertainty. India offers a natural hedge — the world’s largest young workforce, a massive domestic market, and improving infrastructure.
According to Counterpoint Research, India accounted for 14% of iPhone production in 2024–25, up from barely 1% in 2018. This is not just an incremental rise — it signals that India is moving from a “back-up” production site to a central hub. Analysts estimate that Apple could manufacture over a quarter of its global iPhones in India by 2027, reducing its China exposure significantly.
“India is no longer a Plan B. For Apple, it is fast becoming Plan A,” said a senior analyst with a global tech research firm.
The PLI Push
At the heart of this transformation lies India’s PLI scheme for large-scale electronics manufacturing, launched in 2020. Under this, firms receive incentives of 4-6% on incremental sales of goods manufactured in India. Apple’s key suppliers — Foxconn, Pegatron, and Wistron (now owned by Tata) — have already committed billions of dollars to scale up operations.
Government data suggests that PLI schemes have attracted over ₹1.5 lakh crore in committed investments, of which electronics manufacturing is a major beneficiary. In the process, India has not only boosted exports but also created over 2 lakh direct jobs in electronics assembly, with another 5-6 lakh indirect jobs in logistics, components, and ancillary industries.
Crucially, Apple’s export figures underscore the shift: in FY2024–25, Apple exported iPhones worth over $12 billion from India, making smartphones the country’s top exported electronic item.
India vs. China: The Larger Context
Apple’s pivot fits into a broader reordering of global supply chains. Western companies are under pressure to “de-risk” from China amid rising tariffs and geopolitical rifts. The US has tightened export controls on Chinese tech firms, while Beijing has signalled it won’t back down on Taiwan.
In this backdrop, India offers not just an alternative but an advantage. Labour costs are lower than in China, land and logistics reforms have gathered pace, and New Delhi is actively negotiating trade deals to ease high-tech exports.
At the same time, India’s partnership with the US adds strategic depth. Washington has quietly encouraged Apple and other firms to expand in India as part of its “China-plus-one” strategy. By producing US-bound iPhones in India, Apple essentially aligns business interests with geopolitics.
Challenges Ahead
Yet, the road is not without bumps. India’s component ecosystem remains shallow. While final assembly has scaled up, critical inputs like semiconductors, display panels, and camera modules are still imported. Unless India deepens its local supply chain, it risks being a mere assembly base rather than a full-fledged manufacturing hub.
“PLI is a catalyst, but long-term success depends on building indigenous capacity — from chips to components,” warns an economist tracking India’s industrial policy.
Infrastructure bottlenecks also persist. Power reliability, logistics efficiency, and regulatory red tape remain challenges compared to China’s manufacturing clusters. Apple’s suppliers have repeatedly lobbied for smoother customs clearance and faster approvals to match global benchmarks.
The Larger Payoff
Despite these hurdles, the potential payoff is massive. Analysts suggest that electronics exports could cross $120 billion by 2030, making it one of India’s top foreign exchange earners alongside software and petroleum products.
The employment impact is equally critical. With millions entering the workforce each year, large-scale electronics production offers a scalable solution to India’s job challenge. Apple’s ecosystem — spanning suppliers, logistics providers, and component makers — could serve as a template for attracting other global giants in semiconductors, EVs, and green tech.
This shift also strengthens India’s geopolitical hand. As global supply chains fracture, manufacturing is becoming a lever of power. Hosting critical production for global icons like Apple gives India both economic heft and diplomatic leverage in an emerging multipolar order.
A Defining Moment
Apple’s India pivot, therefore, is more than a corporate strategy. It is a marker of India’s arrival on the world’s manufacturing map. Just as China’s “iPhone factories” once symbolised its rise as the world’s workshop, India’s iPhone exports could define its next economic leap.
The government’s task now is to ensure this is not a one-company story. Expanding the PLI’s success beyond smartphones, building deeper component supply chains, and investing in skill development will decide whether India truly becomes the “world’s new production hub.”
As Apple readies its next iPhone launch with “Made in India” tags destined for American consumers, New Delhi can claim a quiet but decisive victory: India is no longer at the margins of global production networks. It is, increasingly, at their centre.