Apple Inc. is doubling down on its India manufacturing strategy as global dynamics push the tech giant to reduce its reliance on China. The recent threat by former U.S. President Donald Trump to impose a 25% tariff on iPhones made outside the U.S.—specifically naming India—has further amplified the importance of this pivot.

Despite the warning, Apple CEO Tim Cook remains committed to boosting iPhone production in India, aligning with long-term plans to make India a central hub in Apple’s global supply chain.

Why India?

Apple’s diversification strategy is driven by several factors: rising geopolitical tensions, the fragility of single-source manufacturing, and the Indian government’s favorable policies. Here’s how the strategy is unfolding:

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Key Developments in Apple’s India Strategy

Key Factor	Details
Trump’s Tariff Threat	25% tariff proposed on iPhones made outside the U.S., including in India.
Current Production in India	15% of global iPhone production; goal to increase to 25% in coming years.
Foxconn Investment	$1.49 billion in Tamil Nadu to build a display module plant.
Location of Facility	Kancheepuram, ~80 km from Chennai.
PLI Scheme Incentives	Apple and suppliers received over 75% of nearly $1B disbursed (2022–2025).
Tim Cook’s Commitment	Indicated majority of U.S.-sold iPhones would be India-made in Q2 2025.
Geopolitical Context	Ongoing U.S.-China trade uncertainties and new Washington-Beijing deal.

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Government Incentives Fuel Growth

A crucial element of Apple’s expansion is India’s Production-Linked Incentive (PLI) scheme, which has unlocked substantial benefits for Apple and its suppliers. The program has disbursed nearly $1 billion between FY 2022–2025, of which Apple reportedly secured over 75%.

This backing not only lowers the cost of setting up local infrastructure but also accelerates time-to-market for devices assembled in India.

Strategic Manufacturing Shift

The centerpiece of Apple’s local production push is a $1.49 billion investment by Foxconn, Apple’s primary manufacturing partner. The new facility in Kancheepuram, Tamil Nadu, will manufacture display modules and integrate into Apple’s expanding Indian supply chain.

This site complements Apple’s existing iPhone assembly operations in India and adds momentum to its ambition of turning India into a global production powerhouse.

Long-Term Vision

Tim Cook’s statement that Apple will manufacture most U.S.-bound iPhones in India signals strong intent to sustain and grow in the Indian ecosystem, regardless of political rhetoric. Apple’s move also highlights its strategy to insulate itself from the volatility of U.S.-China trade relations.

Conclusion

Apple’s deepening investment in India is not a reactionary move—it’s a calculated pivot designed to build resilience in an era of geopolitical flux. With supportive government policies, major supplier investments, and a clear strategic vision, India is emerging as a critical node in Apple’s global production network.

As the 2025 deadline for the 25% tariff threat looms, Apple’s India-first strategy may prove prescient—not just for cost avoidance but also for long-term competitive advantage.