Apple’s decision to increase production in India is not by accident. Several reasons make India a great place for manufacturing:

1. Government Support & Incentives: The Indian government has introduced programs like “Make in India” and Production-Linked Incentive (PLI) programs. These programs provide financial benefits to companies that make products in India. These incentives have encouraged Apple’s key suppliers, like Foxconn, Wistron (now owned by Tata), and Pegatron, to expand their operations in India.

2. Cost Advantages Over China: Manufacturing costs in India are lower than in China, making India a cheaper place for Apple to set up large-scale production.

3. Growing Indian Market for iPhones: Apple has seen a big increase in demand for iPhones in India, especially among people who want premium products. Making iPhones locally allows the company to reduce import duties, which can make iPhones more affordable for Indian consumers.

4. Reducing Dependency on China: Apple has faced challenges in China, like US-China trade tensions, COVID-19-related disruptions, and rising labor costs. By shifting more production to India, Apple ensures a more stable supply chain for the future.

How Big is Apple’s Growth in India

Apple’s production and exports from India have skyrocketed in the past year. According to reports, in just 10 months of the current fiscal year, iPhone exports increased by nearly 50% compared to the previous year. In January 2025 alone, iPhone exports crossed ₹10,000 crore.

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Key Numbers You Should Know:

• iPhones now account for 8% of Apple’s total global production

• India is expected to manufacture 25% of iPhones by the end of 2025

• Mobile phones have become India’s top export product, overtaking diamonds and jewelry

These numbers highlight India's rising role in the global smartphone market, making it a key player in Apple’s long-term growth plans.

How Does This Affect Indian Consumers?

Apple’s expansion in India doesn’t just benefit the company—it has a direct impact on Indian consumers as well. Here’s how:

1. Potentially Lower iPhone Prices: One of the biggest concerns for Indian Apple fans has always been the high price of iPhones. Since Apple avoids import duties by manufacturing in India, the cost of locally made iPhones could become more competitive. While flagship iPhones may still carry a premium price tag, older models and SE series iPhones may see a significant price drop.

2. Faster Availability of New iPhones: Earlier, new iPhone models were launched in India weeks or even months after their global release. However, with increased local production, future iPhones could be available in India at the same time as their global launch, making it a big win for Apple fans.

3. More Job Opportunities in India: Apple’s expansion is creating thousands of jobs across India, not just in manufacturing but also in related sectors like software development, logistics, and customer service. This growth strengthens India’s position as a global electronics manufacturing hub and opens doors for skilled professionals in the tech industry.

What Does This Mean for India’s Economy?

Apple’s increasing investment in India is a major boost for the Indian economy. Here’s why:

1. India is Emerging as a Global Manufacturing Powerhouse: Until a few years ago, India was primarily known as a software and IT services hub. Now, it is becoming a key player in hardware manufacturing as well. Apple’s success has encouraged other tech giants like Samsung and Google to expand their production in India, strengthening the country’s manufacturing ecosystem.

2. Boost to ‘Make in India’ and PLI Schemes: The Indian government’s Production-Linked Incentive (PLI) scheme was designed to attract global brands like Apple to set up factories in India. Apple’s rapid growth proves that these policies are working, which could lead to even more foreign investment in India’s manufacturing sector.

3. Apple Reducing Dependence on China: For decades, China has been known as the world’s factory. However, Apple is now looking to diversify its production to avoid geopolitical risks. By shifting production to India, Apple is reducing its dependence on China, making India a more strategic global manufacturing base.

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