Apple India has reported a remarkable 60% increase in iPhone production from its Indian supply chain in the fiscal year ending March 31, 2025. This period also witnessed unprecedented growth in exports. Apple has now chosen India as its manufacturing hub instead of China, a significant achievement for India.
According to Ashwini Vaishnaw, Minister of Electronics and Information Technology, Apple India exported iPhones worth ₹1.5 trillion (approximately $180 billion USD) from India during 2024-25. Approximately 70% of this production was facilitated by Foxconn in Tamil Nadu, while the remaining 30% was exported by other manufacturers, with a significant contribution from the Tata Group.
Surge in iPhone Manufacturing in India
Apple's manufacturing capacity in India is rapidly expanding, primarily driven by the US-China trade war. Increased trade tensions between the US and China have prompted Apple to diversify its production away from China. The lower US tariffs on smartphones manufactured in India further incentivizes Apple to increase production here.
According to the India Cellular and Electronics Association (ICEA), India's smartphone exports reached ₹1.75 trillion (approximately $210 billion USD) in the first 11 months of 2024-25, a 54% increase compared to the same period last year. This surge has provided Apple with an opportunity to further strengthen its production activities in India.
Significant Shift in iPhone Production
Apple's iPhone production primarily originates from Foxconn's factories in Tamil Nadu. Apple's partnership with Foxconn saw a growth of over 40% in the last fiscal year. Foxconn's exports account for approximately 70% of the total, representing half of the overseas shipments. Foxconn's expansion of its manufacturing capacity has strengthened Apple's global supply chain.
Tata Group's Growing Strength
The Tata Group has solidified its position in iPhone production in India. Tata Electronics acquired Wistron's smartphone manufacturing facility in Karnataka and is emerging as a key Apple manufacturer in India. Tata Electronics contributes approximately 22% to the total iPhone exports. Furthermore, the company strengthened its position by acquiring a 60% stake in Pegatron in January.
Pegatron, formerly a Taiwanese company, now collaborates with Tata Electronics in smartphone manufacturing in India. This partnership has established India as one of Apple's largest manufacturing hubs and will further strengthen India's technological capabilities on a global scale in the future.
Smartphone Exports Exceed Expectations
South Korean tech giant Samsung also significantly contributed to India's smartphone exports. Samsung accounted for approximately 20% of smartphone exports during 2024-25, helping establish India as a major electronics export hub. The year's figures clearly demonstrate that India's smartphone exports have exceeded initial projections. It was initially estimated that smartphone exports in 2024-25 would reach $20 billion (approximately ₹1.68 trillion), a figure surpassed within 11 months.
The Future of iPhone Manufacturing in India
Apple's increasing manufacturing and export activities in India clearly indicate that Apple and other major tech companies may view India as their primary production center in the coming years. Government initiatives, such as the Production-Linked Incentive (PLI) scheme, are laying a b foundation for even faster growth in this sector.
Apple's promotion of manufacturing in India presents a significant opportunity for the Indian economy and positions the country bly within the global technology supply chain. As Apple expands its supply chain further in India, positive impacts on the Indian economy, including increased job opportunities and prosperity, can be expected.
The tremendous growth in Apple's manufacturing and exports from India proves that the country is emerging as a global technology production hub. Key players like Foxconn, the Tata Group, and Samsung are accelerating this process. The surge in India's smartphone exports will not only boost economic growth but also establish India as a leading global manufacturing powerhouse.
