Union Civil Aviation Minister Jyotiraditya Scindia recently announced that Apple Inc. intends to manufacture all of its iPhones in India in the near future. He emphasized that this decision is not solely based on diplomatic goodwill but is also a sound economic strategy for Original Equipment Manufacturers (OEMs) seeking efficient and scalable production alternatives.
This development is aligned with Apple’s broader move to diversify its global supply chain, especially to reduce its dependency on China. Apple CEO Tim Cook had earlier stated that a substantial portion of iPhones sold in the United States during the June quarter would be sourced from India. Simultaneously, the company is planning to source other devices such as iPads, Macs, and AirPods from Vietnam, indicating a more distributed approach to global production.
India’s prominence in the electronics manufacturing landscape has grown considerably over the past decade. In 2014, India produced only six million mobile phones, while importing around 210 million. In contrast, current figures reveal that India now manufactures 330 million mobile phones annually, with exports reaching 50 million units. Notably, around 15% of the world’s iPhones are currently made in India, a number expected to rise significantly as Apple ramps up its local production efforts.
A major enabler of this shift has been the Indian government’s Production-Linked Incentive (PLI) scheme. According to Minister Scindia, an investment of ₹4,000 crore under the scheme has generated ₹80,000 crore in sales, ₹16,000 crore in exports, and created approximately 25,000 jobs. These figures highlight the scheme’s impact in fostering a robust electronics manufacturing ecosystem in India.
India’s evolving policy environment and expanding infrastructure have made it an increasingly viable destination for global tech companies. The move by Apple not only reflects a strategic pivot but also reinforces India’s role as a central hub in the global supply chain, particularly in the smartphone and electronics sector.