Supported by the Indian government’s PLI scheme for smartphones, the country secured a reputation as the net exporter of mobile phones with the increased surge in domestic manufacturing. In January 2025, an outstanding record in the country’s smartphone exports was recorded, reaching 25,000 crore INR. Particularly, the surge in smartphone exports from India is driven by Apple, which has increased its production, particularly iPhones, in the country through contract manufacturing.

The government’s focus on promoting domestic manufacturing through beneficial policies like PLI has significantly contributed to this growth. As the nation emerges as the key hub for global smartphone manufacturing, it has attracted international companies to set up production facilities within the nation. In this blog, we’ll understand how the globally renowned multinational tech company, Apple has a major role in driving smartphone exports from India.

Apple’s iPhone Manufacturing Shift to India: Key Reasons

The globally reputed brand in the tech industry, Apple, is actively shifting a significant portion of its iPhone manufacturing to India. Primarily this shift is done to diversify the company’s production and supply chain away from China, which is driven by factors like rising geopolitical tensions, risks associated with reliance on a single country, lucrative incentives and schemes offered by the Indian government, and others. Not just Apple, this shift has benefited the country, as it greatly contributed to increased smartphone exports from India. Here are the key reasons for which Apple is shifting its iPhone manufacturing to India:

1. Supply Chain Diversification: To reduce the sole dependence on China, especially with the rising geopolitical issues between the US and China, the big name in the global tech industry is actively searching for alternative manufacturing hubs to diversify its supply chain. And India’s emergence as a net smartphone exporter makes it a key option for Apple.

2. Government’s Lucrative Incentives: Policies like Make in India and initiatives like the PLI scheme, have played a significant role in attracting big brands like Apple to invest heavily in setting up their manufacturing facilities in the country.

3. Expanding Indian Market: With the rapidly growing middle-class consumers of premium smartphones like iPhones in India, brands like Apple are getting more motivated to set up manufacturing and production facilities within the country to fulfill the demand of a massive customer base.

4. Cost Benefits: By setting up manufacturing facilities for their most popular product iPhone in India, Apple has significantly lowered their costs spent on import duties of finished products, which has increased their profits and competitiveness in the local market.

5. Strategic Partnerships: The globally reputed smartphone brand is establishing strategic partnerships with the country’s local suppliers and contract manufacturers. Also, the country is developing a skilled workforce capable of supporting complex electronics manufacturing processes, making India more suitable for iPhone production.

Key iPhone Models Manufactured in India

The reputed tech company, Apple started production of its premium smartphones in India in 2017, which was initiated with iPhone SE. Followed by this model, iPhone 13, iPhone 16 Pro, and Pro Max models manufacturing also began in the nation in 2021 and 2024, respectively. Presently, iPhone 12, 13, 14, 15, and its entire 16 lineup is manufactured in India.

iPhone Manufacturing Expansion in India: Impacts

1. Economic Growth: Apart from increasing smartphone exports from India, iPhone manufacturing expansion in the nation has significantly impacted its economy. Increased production of iPhones has contributed to the national GPD significantly and boosted the impact of initiatives like Make in India.

2. Job Creation: Apart from economic growth, the establishment of iPhone manufacturing facilities in India has generated more employment opportunities, particularly in regions like Karnataka and Tamil Nadu, where a skilled workforce is being developed.

3. Supply Chain Development: Local contract manufacturers are supported and encouraged to set up operations in the country, contributing to the creation strong domestic supply chain for electronics production

4. Skill Enhancement: The Indian workforce to ensure fulfillment of Apple’s high-quality standards by being trained in advanced manufacturing techniques, contributing to skill enhancement.

5. Foreign Investment: Investment by big tech companies like Apple in Indian manufacturing has boosted foreign investors’ confidence, resulting in increased foreign investment in the country.

Conclusion

The expansion of Apple’s iPhone manufacturing in India has boosted exports, created more jobs, enhanced technological skills within the workforce, and ultimately reinforced the country’s position as a key player in global electronics manufacturing. iPhone’s manufacturing shift has acted as a driving force for increased smartphone exports from India. It is anticipated that the country will continue to establish its name among major hubs for smartphone manufacturing and exports in the future. A substantial increase of 42% in smartphone exports compared to the previous year indicates the immense boom in this sector with support like the PLI scheme, and the trust of companies like Apple, and others.

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